Are today’s policy challenges and market behaviour largely about post pandemic macro, or are they reflecting fiscal, monetary, and financial “dominance” that stem from two decades of interventions? Mustafa Chowdhury, a veteran of bond and credit market analysis, returns to Kopi Time to offer a nuanced but highly important perspective on the impact of policy distortion on market behaviour. Why did the long-end of the US yield curve sell-off after the September rate cut? Why haven’t banks reduced their duration exposure despite the regional bank crisis last year? Why are long-term mortgage rates so high and why aren’t short-term products available? And still, why is the housing market so strong? What about the perennial academic and policy debate on price levels versus differences, and how has that caused monetary policy errors? Given all this, what is the outlook for rates, FX, credit, and financial stability? This rich conversation offers excellent insights; a must listen for economists and market strategists.