We talk about three topics.
First, what to make of the Fed’s comments that they could rase rates next year if the data suggests it. It’s like, all of a sudden, there is zero forward guidance and everything is up in the air. From my perspective, this is just frustration the Fed Chairman is having this week looking down the barrell of massive deficit spending ruining his work reducing inflation.
Second, all of this is further inflamed by the question to the Fed Chair if he can be fired by Trump. He had the best one line answer: NO. Because the President doesn’t have that power - that is why we are a wealthy country and not Turkey, a place that has no central bank independence.
Third, the host and I both agree this isn’t a practical reality. Powell’s term ends in two years. That will come faster than we think. Then we can start complaining about the new person - because investors over the last 20 years have been programed by the media and politicians to hate the Fed or at least second guess each move. Just don’t tell anyone that the Fed actually has very little effect most of the time, outside of major market dislocations.