Fidelis Capital flags Warsh’s unclear Fed messaging as driver of bond yield jump
SPY•Unclear Fed guidance lifted long-end yields
Fidelis also pointed to market volatility after Fed Chair Kevin Warsh delivered unclear guidance despite holding rates steady Wednesday.
Bond yields rose on the long end during the press conference, reflecting reduced confidence in the Fed’s inflation path.
Fidelis expects heightened uncertainty into the September meeting as Fed communication stays limited, with Iran war risks a key variable.
Fidelis points to forced selling and margin calls
Fidelis Capital flagged forced selling at AI-focused hedge fund Situational Awareness following margin calls tied to leveraged positions.
Several core holdings fell more than 20% in July, then rebounded Thursday once selling pressure eased.
