Instant Reaction: Fed Holds Rates, Three Officials Dissent

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the world. Mima kay As your.
Decision, no change in rates, but we have four four descents.
Laurie Logan, Beth Hammock, Neil Kashkari agreed rates should stay
on hold, but they did not support including an easing
bias in the statement at this time. Stephen Myron wanted
a quarter point cut. The last time there were four
descents October sixth of nineteen ninety two. As for that
easing bias, the statement still contains the phrase in considering
the extent and timing of additional adjustments to the target
range aligned meant to suggest that the easing cycle has
not necessarily ended. The Iran War figures prominently in the
economic overview. Inflation is elevated, in part reflecting the recent
increase in global energy prices. The statement says developments in
the Middle East are contributing to a high level of
uncertainty about the economic outlook. The Committee remains attentive to
the risks on both sides of its dual mandate. It says,
even though recent indicators suggest that economic activity has been
expanding at a solid pace, job gains have remained low
on average, the statement says, and the unemployment rate has
been little changed in recent months. The descents open up
a whole new line of questioning for Chair Powell. For
descents would ordinarily be a sign of discontent with the Chair.
Since this is likely Powell's last meeting as the chair,
it may not be anything more than expressions of concern
about the toll of the war. At each meeting this year,
the number of Open Market Committee members who have worried
they might have to raise rates has increased. We shall
see when we get a chance to talk to the.
I'm a key, stay close. I just want to run
through the price action. I've got a big question to
come back at you with in just a moment. Equities
have stayed slightly lower, no drama here, down by zero
point two percent. Into this decision, Yields were already elevated,
particularly at the front end of the curve. They stay
somewhat elevated, up seven basis points at three ninety. This
isn't the kind of decision that moves around crude could
is still higher by sixty seven one eighteen on Brent
Mike McKee. I just wonder coming into this decision, we
were talking about the possibility, the potential this Federal Reserve
introduced some symmetrical reaction function, but looking at that kind
of descent, I wonder if the descent alone has achieved
the same thing just by introducing to two way risk.
Given the level of descent you can see in this
afternoon's decision, that's a.
Very good point because, of course, if Powell leaves the FED,
that's one less vote that we know would be on
the easing side. At this point, we're going to have
to wait for the minutes unless the Chairman wants to
give us a number, which I doubt he will. Of
people who think that they should be at least suggesting
the idea of raising rates in the future, but it's
obviously grown since the last time, and feelings have grown
more certain, at least among those who think that two
way warning should be included in the statement. It's very,
very unusual. Obviously, it has been almost thirty years since
we've seen anything like this, and it is definitely a
sign that the FED is split over this question. And
one would think that if these people were willing to
dissent because they wanted a two way warning, because they
did not want an easing bias in the statement, that
they probably would have voted for a rate increase had
that been on the table.
Mamma Kay, appreciate your time you get in the news conference,
looking forward to you a lot of questioning. A little
bit late to that news conference, twenty seven minutes away,
we have an eight to four vote at the Federal Reserve.
That's some level of descent.
Yeah, And didn't Mike just say that that was the
first time we've seen that since October sixth, nineteen ninety two.
This is unusual to me. This really highlights the committee
aspect of this, and the fact that Fedcher J. Powell,
for all the job owning from the President, sits on
the more dubvish end of this, and I think that
that's very notable. So how does he message this given A,
he probably doesn't matter as much, but B, how does
he signal that this isn't necessarily a sign of dysfunction
ahead of a new FED chair coming in, but rather
how difficult this moment really is.
The expert on this is John Ferrell is the gentleman
from the United Kingdom, or descent is far more evident.
There were two moments of four descents in the eighty
nine to ninety two period, and the distinction here, John
is those descents were too ease to let up as
green span was stricter. And this is radically and historically different.
So I remember a level of descent, at degree of
descent back of the bank having that coming out, what
to do right? He wanted Milkiwi, And I remember the
governor being voted down on countless occasions. On this occasion,
I'm looking at this level of descent, and I just
wonder if the chairman would welcome it.
I think it's probably a good thing.
Right now that there is no group thing that we're
in a situation at the moment that deserves some kind
of debate about where policy should be and where is
it going and what kind of risks we face in
the economy right now. I actually also think that that's
the kind of committee that Kevin Wall should want to inherit.
Group think has been a problem at this institution for
the last five years. I wouldn't look at that as
a committee that's voted down the chairman in quite the
same way that the committee voted down the governor at
the Bank of England a number of years ago.
This feels somewhat different.
And if you want to move to some kind of
symmetrical reaction function at the Federal Reserve based on that vote,
I don't think you need it.
In the statement, I think the descent already speaks.
To it, which I think is why I'm noting the
increase in the dollar more than anything in body yields.
You're seeing a strengthening in the dollar versus the euro,
and that I think gives you a sense maybe at
least of the tendance question and the fact that this
truly is a committee.
But to get up in front of a pundits, is
this the committee and descent that President Trump wants?
That's a different question.
Yeah, this president clearly wants lower interest rates TK and
the kind of thing that we've just seen voted for
right now is not for lower interest rates. You've got
a committee that's worried about the prospect of a market
thinking they'll always get interest rate cuts that they don't
have to worry about inflation. First and foremost, the first
rule for any central banker, any real central banker anchor
inflation expectations.
This is part of the exercise.
Yeah, as Neil Dota put it, he messaged, it's clear
that worsh has his work cut out for him. Good
luck convincing some of these folks that it's time to
cut rates and potentially overall the whole system.
Different question entirely.
Bob Michael with us around a table from JP Morgan
Asset Management. Bobby Ready reflections on this decision.
Yeah, clearly it's in the dissense. Clearly they're moving more
towards a symmetrical policy. It's confirmed in the first paragraph
where they characterize inflation previously as remained somewhat elevated, they
remove the somewhat and it's just elevated. So they're telling
us they are increasingly concerned about the level of prices,
the level of oil, and the potential paths through to
the system. I think you're right. I think this is
less a message about JPAL and more a message to
the incoming FED chair that hey, we could be dissenting.
Get prepared for that. He may welcome that.
T K asked the question about the president, what the
president would like? This is another exercise it's quite important.
Everyone's been worried about the future of the Federal Reserve
Central Bank independence.
Will the chairman stay on? That degree of descent makes.
The life of I think Chairman Powell easier to walk
away from this institution. There's no capture of this institution.
This institution is still independent. Inflation expectations are still anchored,
and that is not dependent on fetch J. Pow staying
gone as a governor on this board for the next
two years.
I see what you did there.
So maybe they agreed.
Four people dissent, although one of them is perhaps in
a different direction. You're to Jerome Powell coming out and
saying I'm gone.
Good luck for you. Go ahead, Kevin.
I'm not suggesting there was any choreography here, just that
there are some benefits to that level of descent stefinitely. Rather,
Wolf's research has been going through the statement and reacting
to all of this and looking at the price action. Stephanie,
you're really take please.
Yeah, I mean, I think when it tells us that
the committee is certainly divided, and they're not going to
be a committee that's willing to just cut rates because
Warts wants them to do so, and It's also interesting
because in the hearing last week, Warsh noted that he
wants the bit in the room, but he wants a
more unified statement, and that's certainly not what we got today.
So the odds of COTS later this year certainly should
go down on the back of what we're seeing today.
It's just a committee that certainly doesn't even want to
have an easing bias, let alone easing in the near term.
Stephany, does it surprise you that more members of the
Federal Reserve didn't get on board with moving to a
more symmetrical type of approach.
A little bit?
I mean it certainly it sounds like it was a
fairly divided group, and perhaps there were others that were
even more on the fence that didn't officially dissent. This
was a big question for the meeting today. There was
actually two big questions. One was were they going to
maintain the easing bias in the statement? And many thought
that they would actually remove it, So that was, you know,
perhaps a bit of a surprise to some extent. And then,
of course the other question is how is how we're
going to answer the questions about what his plans are
once wars is actually confirmed.
But Michael, what is our overall stimulus right now? I
know we had timing for tech season where everybody got
a check in the mail and all that, But what
is all of this discussion about an historic post COVID
stimulus that it's starting to make the wheels come off
the wagon.
Yeah. Well, when I was listening to Matt and Subadra
earlier going into this, I was thinking the Fed would
be nuts not to move to a symmetrical posture because
we know we have higher prices. And what I heard
from them is the economy is doing just fine. They're right,
You've got the stimulus from the one big, beautiful Bill
Act that's not finished. We know there's a tremendous amount
of CAPEX. When I talk to our clients, they're just
getting started on the AI journey. There's a lot more
spending to come. And we also know there's a lot
of money slashing around the system. You look at any
measure of money, M two deposits, you know, money market funds,
they're still going vertical.
Can I do an audible?
Yeah, you're doing audible here to get the four pm
and four fifteen pm. You're the bondpro what's sowhat of
thirty billion dollars from one of these mag simis. They're
going to put the money out, They're going to call
Bob Michael, it's all going to go to JP Morgan.
And when they do that, what does it mean for
the dynamics of their balance sheet? What does it mean
for the dynamics of the American fixed in gum market?
Well, the guys reporting today, if they were to issue
thirty billion, you'd hardly notice it. That's how big they are,
that's how little leverage they've carried. And in our conversations
with a lot of big borrowers, we want to know
do they see the demand? These guys have the demand.
They'll show you the demand, and they can't monetize it
until they put in place the capacity. So there is
a big bill to go, and I think these guys
are right to borrow and get that bill going.
Are you some twos at three ninety three up? Ten
basis points off the back of this?
Do you know?
You ask me what if the FED did this and
we never really thought they were going to do this,
It's a very artistic way to do it. Nope, I
wouldn't touch it to that.
Point, to that framing, that's really important. Haven't they achieved
the same thing you don't need it in the statement?
Haven't the sents achieved the same thing?
Well, it's kind of in the statement. It's the last
line at the statement. It's and you talked about was
this choreographed or not? I absolutely think it was. Every
single word in the statement is choreographed. They sit there
and they debate it. I think this very nicely opens
the door for Jay to peacefully deparse it, depart from
the FED.
So this is their sort of offering to him. The
farewell gift to him is here you go, and that
ultimately we're going to give Kevin wartsh a hard time.
I don't well, okay, I didn't say that. I think
what they're indicating is, like, we recognize inflation is a problem.
We're not going to sit there and keep advocating for
more monetary ease. We're going to be more balance, don't
worry about the independence of the FED. Jay go off
into retirement.
You said you wouldn't buy it. Why wouldn't you buy it?
Because I think the FLED has flipped the tables on
the markets right now, and what does that mean I
think they've now shifted to something. It's not outright hawkish,
but it's more hawkish than where they've been. And then
you step back and go there is still stimulus out there,
and we're in the middle of the Middle East conflict.
Those things have yet to be settled. Let's just get
out of the way of this and see where them.
Okay, so let's build on that. Let's extend the conversation
a little bit more.
Tens are at full forty one right now, what kind
of numbers are you thinking about?
Well, we were breaking through to new highs. I don't
think you get to five percent, but do you get
to something like four and five eighths, Probably, then I
get interested. Then you're starting to you're putting a percent
on the Fed funds rate. And I think it's one
thing to switch to a symmetrical bias. It's another thing
to actually come in and start hiking rates. And I
did say I don't expect any changes in rates this year.
That's cuts or hikes.
John. Five eighths is how we used to quote papers.
Thirty seconds in the next hour.
I'm aware tends right now at full forty one. With
this move at the front end of the curve. As
I mentioned, up ten basis points three ninety four, let's
call it three ninety three. Equity start to break down
just a little bit. Don't make too much of this.
We're down by zero point three percent on the S
and P five hundred. You will notice Bramma the on
the performance in a Russo down by one percent plus.
These are the companies that are most vulnerable to rates
going higher. I really am struck by what Bob's talking about,
because this is a market shift, and really it does
highlight how much this war has changed the dynamic fundamentally
for people who believed that rates would just gradually go lower.
And if they don't, how much does that change some
of the expectations about the equal weight market which we've
seen in being baked in, and frankly about the broadening
out trade, and adding to that, how much steam can
it be behind some of the tech trades that are
somewhat dependent on some of.
The consumer aspects.
I'm thinking, for example, meta advertising or Amazon, your cleaning supplies,
your children's costumes, whatever children's costumes.
I ended to buying a lot of those. Okay, well,
I had a Halloween it's getting the discount.
And also senior parties.
Okay, all right, important stuff. Hey's definitely good to hear
from me this afternoon. Thanks for your time, Stephanie Roth
for for research to talk about the equity market. Kate
Moore City joined us now for more. Kay, you're just
starting to move higher, getting a squeeze over and crude
Brent out to close to one twenty. Equities somewhat softer
but not really looking at this as a dramatic event.
How would you frame things?
Yeah, I don't think today's event and would have said
is the big event for equities right now. This is
also like a massive lallabluzo when it comes to earnings
this week, which you know Donvin quite well. And I
think the equity market attention is much more there and
so far everything that we got yesterday, expectations for Act
of the Clothes today and tomorrow are for actually quite
strong numbers, reiterating not just the AI text story but
also actually a very solid US consumer. So I think
that is really where kind of equity risk is focused
right now. Less so on this what is what I
would argue is also a very interesting set of descents
in the FMC.
That said, is there a level or is there some
sort of rate of change that gets you concerned as
an equity investor about what's going on in the bond market.
Should this FED suddenly move to put rate hikes squarely
on the table.
It seems unlikely in our view that the FED is
going to put great hikes on the table. Lisa, I
would say that is not in our kind of any
of our distribution for the back half of this year stability,
even as inflation is warm, and even as the FED
is going to wait and see and more descent happens
across the FMC. But we of course will watch what happens.
Because the relationship between equities and bonds has broken down
a number of times over the last couple of years.
The correlations are not exactly what they had been historically,
and bonds have not been the safe even asset that
some people had become used to in their early days
of acid allocation. So across our multi asset portfolios, we've
been more Tactical's continue to be short duration. I heard
Bob a moment ago say he wouldn't be buying two
years at this point. I tend to agree with that.
And we tend to like to take most of our
risk on the equity side and think about other diversifiers
outside of the fixed income space.
Gay I look at where we are in the market,
and John I brought this up today because frankly I
have misplaced this. The Dow up twenty percent one year trailing,
SPX up twenty eight percent one year trailing, all in
Nasdaq of forty one percent one year trailing. Kate's completely
separated from the nation's angst. What do you see as
an indication that that keeps going and how can the
Fed and assist with that?
Yeah, Tom, One of the things we've been focusing on
in something our Investment Committee was talking about earlier today
is the massive dispersion in terms of sectoral earnings, not
just this order, but through the balance of twenty twenty six.
And this is also kind of what we're seeing in
the overall economy. We've gotten hired. I think of talking
about the case shaped consumer because even the bottom part
of the case seems to be holding up relatively well
with decent real wages, but there is a huge amount
of dispersion below the surface in the equity market fundamentals
and in the macro fundamentals, and that can make people uncomfortable,
But unfortunately, what's really driving the market higher has been
extremely strong earnings and expected free cash flow from the
large parts of the market cap. And we continue to
stay kind of anchored to the equity risk and loving
US large caps, even as we recognize it is going
to be a very uneven experience and perhaps a better
opportunity for some more active management as we go through
this year.
Unfortunately, part of the downs right now monitoring equity markets,
bond markets, and commodity markets. More importantly is following these
headlines regarding the Middle East, and we've got more from
the President this time, some comments on the Russian leader,
Vladimir Putin. They've had a conversation. The Russian leader said
he'd like to help with the Iranian enrichment. There has
been some suspicion for a while that maybe that in
rich Iranian would be moved to a third party, and
perhaps that would be Russia. And some headlines I have
to say, looking at this that are lose to that, Lisa,
at least a soufternoon now, as we said on countless
occasions over the last two months, one headline that speaks
to one story will last about five minutes, and things
can quickly change. All I can do with you is
share with you the current headlines, and that the headlines
that dropped just moments ago.
Yeah, and they include the idea of potentially having a
ceasefire with Ukraine in Russia and then Urania moving from
ran over to Russia. I mean a lot of things
that are a lot of questions what you do with this.
I think people have.
Shrugged it off and moved on because they don't know
what to do with it, because it's just a headline.
So they look at things like, oh, the placating idea
of rates going down. You start removing some of these pillars.
That's when suddenly some of the inks starts to percolate
up a little bit more.
Initially, I think this market took comfort from the intent
they commit to de escalation, the commitment to de escalation
and not returning to hostilities. But the fact of the
matter is that over this entire period, creud's not been moving.
Energy has not been flowing sufficiently, and every day for
the last eight sessions, crew keeps grinding higher.
It's intriguing about this.
Every time we get a bit of hopeium some headlines
and reports here, there and everywhere. CREWD has really stopped
responding to it in the same way Brent is still
elevated here TK one to eighteen and up on the
session by six percent.
I really agree with that. And you see the angst
in Southeast Asia and other selected geographies, and it's way
more tangible than anything we have. The sum of this
is real GDP and the inflation piled on top of it.
Kate Moore, if you're still with us, I'm absolutely fascinated
how you feel nominal GDP will affect our listeners. In viewers,
it's still going to be buoyant, I guess. But it's
a different nominal GDP, isn't it.
Yeah, it is.
And look, I think some of this tom is getting
reflected in the consumer confidence data and the surveys that
have come out out where consumers are talking about their discomfort.
It's not just high gas line prices, and maybe it's
they don't like the direction of the country. They don't
feel as confident as they have in the past. Yet
the thing that I keep anchoring on is actually what's
happening in their behavior. And we've been looking at all
this high frequency consumer data VITA, whether it's around dining
outside the home or traveling and spending. And we've got
some good reports from our couple early consumer companies this quarter,
and all of it is showing that despite all these
negative surveys, people feeling uncomfortable with the path of the economy,
that they're continuing to operate more bau. So, Tom, this
is a little bit of a friction I think we have,
which is maybe we don't get a massive acceleration that
benefits all parts of the economy, but as long as
both the consumer and the AI text space continue to fire,
you know, we feel like you can't be on the
sidelines for risk assets.
Okay, it's going to say the cash up, as always
came more than of citsy breaking down the secuity market
and reflecting on this decision from the Federal Reserve about
twenty minutes ago. If you're just churning again, welcome to
the program. At about him time, we're here from the
Chairman of the Federal Reserve, Chairman J. Powell, in what
could be should be his final meeting at the Federal Reserve.
Just moments ago.
Twenty minutes ago, we had a decision from the Federal
Reserve to leave interest rates unchanged. What stood out was
the degree of descent eight to four, eight four, and
that eight to four vote marking the first time since
October nineteen ninety two the four officials have dissented against
an f WEBC decision, so something we haven't seen a
number of decades. All of this and anticipation of earnings
after the closing bow from some of the biggest companies
on the planet, including Microsoft, Amazon, Meta Alphabet, all of
that's still to come, which has supported the Nasdaq. The
nasdak is still positive by a quarter of one percent.
But if you want to look at the small caps
right now, the Russell down by one percent. Allow me
to give you a why this move at the front
end of the yield curve on a two year up
nine basis points to three ninety three Off the back
of this move in the commodity market, Lisa Brent crude
one to eighteen and up six percent.
Fed funds features have now priced out completely at any
rate cuts this year. We are now racing out interest
rate cuts by the Fed Reserve for twenty twenty six.
Whether we shift to people starting to price in rate
hikes like we did a couple of weeks ago. That
remains to be seen. It also is unclear exactly how
much the press conference can really do to that. It
will be political intrigue and drama whether Jerome Powell's future. Nonetheless,
this market is moving, it's responding, and the idea that
the strength of the US economy can continue is the
reason why this is viewed as more inflationary right now
than maybe disinflation or outright deflationary later on.
The cross asset moves are particularly spectacular. We've gone back
to where we were about a month ago, about a
month ago when the equity market was about thirteen percentage
points south of where it is right now. In the
s and P five hundred yields to bat through the
heights on some maturities, I'm looking more at the long
end of a curve. The long bond on thirties and
crude has made new highs as well. And what's more important,
I think, away from the front month of the future's curve,
is what's happening on longer dated prices as well. You've
talked about this around the week on Bloomberg's surveillance promo
where decembers training, where the latter months are the back
end of the future's curve that's making new highs as well.
This is a market that's pricing high for longer, not
just for interest rates, but for energy as well.
And that's why we always have been talking about boiling
the frog, because it's getting harder and harder and harder.
And at what point do capital markets start to slow
down as a result of benchmark rates going higher and
inflationary pressures being This has.
Been the exercise for US now for the best part
of two months. Energy shock, rates shock, What does it
mean for growth? But that's the question I think is
still an open ended question.
Really.
We've seen it in commodities, we've seen it in energy,
and I'm asking this question with America in might before
we get to the international bank drop where it's much harder.
What does it mean for US growth if anything at all?
Well, I think we have to acknowledge that the three
descents weren't in favor of hikes. They were in favor
of a more symmetrical policy, which leaves three quarters of
the FED still biased towards ease. So let's accept that.
That said, the bar to hikes just got lowered a notch.
What does it mean for growth? It means that unless
the economy can absorb higher prices from energy and higher
cost of funding from where rates are, then you're going
to see a real slow down.
At what point do higher yields start to crimp the
capital markets activity? I'm talking about all the bond sales.
I'm talking about beyond that, mergers and acquisitions that have
been absolutely flying recently.
I don't think we're there yet. I think really you'd
have to get the ten year above five percent to
create any kind of damage. And let's also remember that
most of corporate America finances itself with floating rate. We
should know that from private credit and direct lending now.
So unless the FED is going to start hiking rates,
which we're not calling for this year, then the cost
of funding for most of corporate America is going to
remain roughly the same.
Is the FED doing policy for the havels. It's just
as simple as that. The economy here between the halves
and the havens. Witness attention or fourth sense, How does
the new chairman address the have nuts, the people flat
in their back.
I don't think it's a question of have or have nots,
and I think you go back to the twenty twenty
two experience. I think they're scarred from that. They were
late to react. Inflation was painful and it hit all
levels of the economy, both the haves and the have nots.
And I think they are genuinely as a body trying
to get their arms around that. And there are a
group of people who were courageous enough to step forward
and do something different than what's been done in the past.
What will the next meeting look like? For you? You
guess right now what the next meeting will look like.
I think there will be a lot more to a
debate on whether they should be hiking rates, will they
have to cut rates down the road, or will they
remain Larry.
Meyer wrote that monograph years ago about Alan Greenspan, and
there was some real John, There were some real back
and forth going on way back. Is that what we're
up for now is a Lawrence Meyer Allen Greenspan fed
with Chairman wsh It.
Probably it doesn't feel like the Middle East is in
the rear view mirror or will be six weeks from now.
I've got a personnel question. When the next mate should
be chairman. Walsh is pal there or not.
I don't think he will be.
You think he steps away.
I think the FED is in good hands with Walsh.
I think you've had a group of people say, don't worry,
we're still independent, and I think you've just got to
pass the reins on and let somebody else try things
that may be a little bit more innovative, a little
bit different from what you've done.
Is there a market liability if he doesn't do that?
Is there a market reaction?
I don't think so. I think there will be a
lot of concern that it's too much of a political decision.
I think the door is wide open to exit gracefully.
John June seventeenth, I guess I got to cancel my plans.
I was supposed to be in chulting him, but instead
I'll be June seventeenth.
I'll be here two things, one chout them and two
for the record, I won't be here.
I will be away. I won't be a chouten him,
though I'll be missing that one.
Does this make the life of Kevin Walsh just that
a little bit easier entering the Federal Reserve? This might
sound somewhat counterintuitive, but entering the Federal Reserve under a
little bit of a dark cloud where some people are concerned,
particularly the Fed watchers, about the future of this institution
and central Bank independence. I think not only of these
dissenters done Shairman Powell a favor. I do think they've
done Kevin Walsh a favor as well. Yes, he doesn't
want this planing out in public, but one of the
criticisms of this institution, particularly under Chairman Powell, is the
group thing. I think it's refreshing to see the descent.
We've been asking for it for ages. You can't complain
about it once you've got it.
Not only that, but arguably the inner Kevin worsh is
a hawk is somebody who wants to say inflation is
a choice. He didn't mention employment once, We didn't talk
about the labor market in those hearings. He wasn't talking
about the average American flat on their back. He talked
about inflation and how important it was to the credibility
of the Fed to get it under control. So what's
the risk that he comes in is actually incredibly hawkish.
It joins those three other dissenters in case of a
more symmetric risk. What does a market do with that?
This is the secret source of central bank independence. He
want to make it easier to cut rates, convince the
market you're willing to hike, and we have gone some
way through that exercise the sou afternoon with this degree
of descent.
What's interesting is what Bob said is that levels here
are not going to necessarily hijack any of the capital
markets activity. It's not going to slow the M and A,
it's not going to slow the huge tech trade that's
really been the ballast to this market. So what exactly
is it going to do to actually slow the economy
and actually achieve what the FED is looking to do?
Bob Michael In just about ninety seconds time, the Chairman
of the Federal Serve, J. Powell, walks into that room
and steps up behind that podium for probably likely the
final time. Just a reflection on this man and his
tenure at this institution.
I think he was dealt some shockingly difficult circumstances, and
I think he did his best to navigate through them.
We did get through COVID, we got through the regional
banking crisis. We've gotten through different rounds of tariffs, and
we're looking at an economy that's actually doing pretty well considering.
I think he's done a really good job. And Walsh
isn't an outsider, he's an insider. He was at the
FED before. He'll do a good job.
But Michael, I appreciate your time, sir, thank you. BUTB
Michael there of JP Morgan