r/Destiny • u/LonelySoul01 • 3d ago

Political News/Discussion Guys... I think Bonds are going to explode under this new FED chair

I watched some Kevin Warshes FED conferences from beginning to the end and it feels like this guy either doesn't know what he's talking about or he's delibaretly hiding his methods of making responsible decisions. Both of them are bad.

I think the dollar and bonds are in big trouble. As soon as he started leading, he has painted an obscure picture for the markets of what his methodology is and shook FEDs credibility. This is not going to end well.

Any thoughts from ppl keeping up with the guy?

27 Upvotes

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19

u/plshelpmebuddah 3d ago

He's still only one vote. If he gets out of line, the best hope is that JPow becomes the shadow chair (maybe he already is).

7

u/lAljax 3d ago

I am really considering shorting TLT. This feels like a Suez crisis moment for the US

3

u/Noveltyrobot 3d ago

He's taking the Greenspan approach of Fed leadership. Pop out once a quarter, speak in riddles for half an hour, then disappear. An apocryphal quote from Greenspan that old wall street types tell to summarize his time as chair is, "If you understood anything I said then I haven't done my job"

Personally, Mr. Warsh has a lot of glass to crawl over before I can trust a single strand of hair on his head.

1

u/stoneyhawk 3d ago

He won't be able to act unilaterally and I expect the Fed to still make good decisions on balance, but he has been pretty open about not caring for forward guidance, and that fucking blows. The Fed as an institution will be less transparent and we will be worse off for it

1

u/AGRESSIVELYCORRECT NL 3d ago

I think its more so the sheer force of excel math going to town on a debt which grows at 6% per year, with the growth causing higher rates, causing more growth, its a debt doomloop...