00:00 Speaker A
Markets pricing in a big year for the Fed? More rate cuts, new dovish Fed chair. We’re going to lower interest rates, we’re going to increase consumer spending, and the Dow is going to hit 60,000.
00:09 Speaker B
Look, the new Fed chairman is definitely going to be dovish. We already know this because they will go into Trump’s pocket and he wants to keep interest rates down. But there are three or four, maybe five currently voting members of this camp who would say, wow, slow down a minute. We don’t really think we need to cut rates because remember, they can cut rates and they run the risk of, uh, they run the risk of, uh, reigniting the fires of inflation, which, in my opinion, is a place they don’t want to go. So my view is that the Fed should not take any action. I think interest rates are in good shape right now, neutral based on the economic data that I’m seeing. I have a secret if Steve Miron and others are looking at the second set of data and they’re playing, you know, I can’t help you, but based on what I’ve seen, I don’t think they should be lowering rates at all. But I think the market is just anticipating a cut or two based on the rhetoric and the narrative that they’re pushing.