I am truly saddened by hollowing out all the venerable institutions. One thing to put his doctor in charge of VA and his personal pilot to head FAA, but totally ridiculous to put pizza boy and another half baked economist as Fed. governor. Combine this with his son-in-law as policy advisor and daughter as a soft diplomat. This is truly banana republic. US used to make fun of other countries, now has become laughing stock.
The main problem is that Fed appointees are long-term, similar to the Supreme Court. I sure hope the Senate does not approve, but that would open the door to all sorts of issues. Fed was truly the last bastion of technocracy and if it changes we are all fucked.
@sle You touched a little upon this in another thread, but currently SOFR and FF still trade highly correlated. Unless it breaks down, is it that big of an issue?
I don't understand half of what you folks said or discussed. So, what should us retail traders do? Thank you.
How can these people go wrong? Bullish on Bush: How George Bush's Owenership Society Will Make America Stronger Foreword by Kudlow, author Stephan Moore our next Fed governor
Wouldn't these two gentlemen have to sit at the kiddie table and not play with their food. I think they might last months , quit, and switch to piano lessons. Sad to joke this way of our billionares.
Well, the problem with stuff like FRA/OIS or FF/SOFR is that when it does breakdown, it means that something went bump. I'll write a bit more detailed explanation later.
Here are some additional items from the FOMC minutes The FOMC isn't concerned about a flat/inverted curve because of the "unusually low level of [Treasury] term premiums." Several participants expressed concern that the yield curve for Treasury securities was now quite flat and noted that historical evidence suggested that an inverted yield curve could portend economic weakness; however, their discussion also noted that the unusually low level of term premiums in longer-term interest rates made historical relationships a less reliable basis for assessing the implications of the recent behavior of the yield curve. Several participants pointed to the increased debt issuance and higher leverage of non-financial corporations as a development that warranted continued monitoring.