Camp Kotok Draws $2 Trillion to Debate Fed Rates, Yield Curve and MMT
Updated
Updated · Barry Ritholtz · Aug 6
Camp Kotok Draws $2 Trillion to Debate Fed Rates, Yield Curve and MMT
1 articles · Updated · Barry Ritholtz · Aug 6
Summary
$2 trillion in capital was represented at Camp Kotok in Maine, where money managers, traders and economists focused on Fed rate cuts, the inverted yield curve and whether negative rates could reach the U.S.
Jerome Powell's stance framed much of the debate: attendees argued rate cuts would do little to spur borrowing or counter tariff damage, and many saw public White House pressure on the Fed as ineffective.
Modern Monetary Theory dominated the gathering's marquee debate, with participants reaching a striking consensus that bond-funded spending backed by Federal Reserve purchases is likely to emerge from either the political left or right.
About 35 to 40 regular attendees meet before Jackson Hole under Chatham House-style rules, using the off-record setting to test views on recession risks, dollar strength and the limits of monetary policy.