MAD Macro - Superheroes for the Fed
Kevin Warsh, Seeking Monetary Truth, Justice, and Hope
Chris Waller, “Avengers, Assemble for the Freedom to Cut Rates”
Superheroes are competing for the next Fed Chairmanship. Superman Kevin Warsh was on CNBC yesterday sounding like he wants to be the next Fed Chairman. He is seeking monetary truth, justice, and hope. He is smarter than a speeding bullet and able to leap tall buildings that his wife owns. Then last night, Captain America, Chris Waller, called for the Powell avengers to assemble and fight for the freedom to cuts interest rates by 25 basis points at the end of July. The competition to be Trump’s next interest rate cutting superhero is heating up. Maybe today Scott Bessent will call for the Fed to cut by 50 basis points at the end of July. Trump is raising the bar for rate cuts this morning. He wants rates at 1% now. I wonder which superhero will win the rate cutting fight. This is actually a fight for the world. The Fed is the world’s central banker. The WSJ has a front page article about the importance of the Fed for the world, linked here. It’s titled, “The Global Risks That Come With the Loss of an Independent Fed”. I am guessing that this superhero fight to be the next Fed Chairman and Trump’s next interest rate cutting superhero will be bearish the U.S. dollar.
Trump is super pissed off at the WSJ for a story about a birthday card he sent to Jeffery. Watch out for a pissed off Trump wearing compression socks. Now he is going to release all of the files. Bill Clinton and Bill Gates are going into hiding. If the bad stuff about Trump and Jeffery is out then everything is going to come out. Nobody, Democrat or Republican, who knew Jeffery will look good. I must admit, the one thig I have always wondered about, is how did Jeffery make so much money?
Markets are mixed this morning after another strong close yesterday. Netflix may not have the superhero franchise but apparently they have everything else. Their financial results look super. The dollar is lower after testing the 50 day resistance level this week. I think it might start another leg down to new lows for the year. We get housing starts this morning. If they come in weaker than expected, Trump will probably call for rates to be zero.
I updated the U.S. Dollar Index, U.S. 10yr yield, U.S. 10yr-2yr yield spread, WTI crude oil, NY copper, spot gold, NYSE Arca Gold Miners Index, bitcoin, Strategy, S&P futures, NASDAQ 99 futures and DOW futures charts below.
The dollar is lower and interest rates are slightly lower on Captain America Wallers comments.
Crude oil, copper and gold are all higher on the lower dollar. The NYSE Arca Gold Miners Index should open higher. Bitcoin is unchanged and Strategy is due to open unchanged.
The S&P, NASDAQ 99 and DOW futures are all close to unchanged.
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