- We're going into an easing cycle
- Not sure why Powell has backed up a bit
- Surprised Fed Chair Powell hasn't signalled destination for interest rates
- Revisions on jobs show something was wrong
- Rates are too restrictive and need to come down
- Will hold lots of Fed interviews next week
- Couple of Fed candidates surprised me
- Less concerned about recession
- We need rate relief; get back at least to neutral rate
- Powell should have signalled 100-150 bps cut
- Looking for someone with an open mind for Fed Chair
- I believe we will see a substantial drop in inflation
- We'll see what happens with this AI boom
There is nothing new here as Bessent continues to parrot Trump's desire to get interest rates down substantially and quickly. He's saying the Fed is going into an easing cycle but the central bank has been in an easing cycle since last year and even if it hasn't cut rates, financial conditions kept on easing given their dovish reaction-function.
There's also very limited proof of rates being restrictive with credit spreads at record lows, equities at record highs and gold rallying like there's no tomorrow.
