On this episode of The Rate Guy we recap today&#x27;s FOMC meeting and cover any happenings, surprise statements and of course Warsh&#x27;s tie color.

Fed Meeting Recap

The Rate Guy

Welcome to The Rate Guy, an irreverent insight into interest rates and current markets. Here's your host, JP Conklin. Good afternoon and welcome to a special edition, FOMC, first ever Kevin Warsh-led meeting of The Rate Guy. I'm your host, JP Conklin, joined as always by my lovely wife and the real boss here at Pensford, Sarah. Good afternoon. Good afternoon.

It is much warmer in our quote-unquote studio with the sun beating directly through the windows into my eyeballs. You're basically blinded right now. I'm definitely overheated, not just because of the temps. What happened? It was kind of a doozy. Oh, man.

So today was Kevin Warsh's first meeting as Fed chair. I thought he would try to strike a balance between I'm independent, I'm willing to hike, that's what the data suggests, without upsetting Trump. I was wrong. He led off with, quote, we are unambiguously and unanimously committed to delivering price stability. The Fed has missed the inflation target for five years and we are going to fix that. Yowza.

He reiterated that point several times. I kept saying it was weird to me that Trump had chosen him because he's this apex inflation predator. He wanted to hike rates when inflation was one and a half percent, but unemployment was 10. Right.

He left no doubt he's comfortable hiking rates. And I think he sent a very strong message to the market that he is independent. The front end got whacked. Two-year treasuries are up 16 basis points. That is terrible news for caps. Half of the FOMC members penciled in at least one hike before year end and a couple of them multiple hikes.

Fed Meeting Recap

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Fed Meeting Recap

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.