"1011 Insider Whale" Agent: If the Federal Reserve shifts toward "financial repression," it could reshape global asset pricing

DeepFlowTech · 2026-03-29T11:31:22+00:00

Garrett Jin mentioned that if the conflict between the U.S. military and Iran escalates, the Federal Reserve may face a triple challenge of inflation, financial stability, and more, and could implement "financial repression" policies to support government bond financing and the banking system. He believes that changes in demand in the government bond market will reshape the risk asset pricing logic, and macro liquidity will become a key variable.

DeepFlowTech

2026-03-29 11:31:22

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Deep Tide TechFlow news, on March 29, “1011 Insider Whale” agent Garrett Jin stated that the U.S. military’s ground warfare plan has been exposed. If the conflict between the U.S. and Iran escalates, the Federal Reserve may face the conflicting goals of controlling inflation, maintaining financial stability, and financing fiscal needs, and thus may shift towards a “financial repression” policy path. This would involve maintaining relatively stable interest rates and releasing hidden liquidity to support Treasury financing and the banking system. The Federal Reserve may guide funds towards the Treasury market by adjusting policy guidance, relaxing the Supplementary Leverage Ratio (SLR) constraints, optimizing risk weight allocation, and introducing emergency liquidity tools.

If the conflict eases in the short term, inflation and oil prices may temporarily decline, providing some recovery space for risk assets. However, if the conflict continues to escalate, global markets may experience structural differentiation, with the banking system under pressure, the dollar weakening, and the real yields on Treasuries decreasing. Garrett Jin believes that the truly critical risk signal lies in the changes in demand for U.S. Treasuries. Against this backdrop, the pricing logic of risk assets, including cryptocurrencies, may be reshaped, and the macro liquidity environment will become the dominant variable.

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