Get ready for Powell to stay hawkish. Trump’s attempt to push his monetary agenda ensures that’s the case. Remember the aftermath of the last FOMC meeting? It was the worst day for tech stocks in three years. Now, Trump’s pushing to boost tariffs, cut taxes, and cut Fed rates all at once. It’s a pipe dream. As Jefferies’ David Zervos said, Powell should take external advice into account, but Trump’s expertise is in digging deep into debt—not in managing the complex realities of interest rates.
The obvious question no bull has asked:
If this is an AI implosion, then why are Nvidia, Tesla and Crypto all 100% correlated?
And the answer is because the same fools own all three in an over-leveraged brokerage account: pic.twitter.com/LI9zuUap6Q
— Mac10 (@SuburbanDrone) January 28, 2025
Downgrades are coming in thick and fast. pic.twitter.com/T6zEkfOqA2
— The Great Martis (@great_martis) January 28, 2025
Chinese markets will be on the Lunar New Year holiday starting Wednesday, so they will miss out on the global trillions destroyed by a $6 million ChatBot.
Which popped the AI Super Bubble.
But, we can always watch India. pic.twitter.com/yWTzPUa8DC
— Mac10 (@SuburbanDrone) January 27, 2025
That’s a big deal. https://t.co/1PA1EpgPHo
— The Great Martis (@great_martis) January 28, 2025
The Dow was green today, led by Healthcare and Consumer Staples i.e. recession stocks.
However, here we note Staples are making their third lower high due to the backup in interest rates. Compared to back in August when it was making new highs every day.
If the Fed is hawkish… pic.twitter.com/0voxughdQJ
— Mac10 (@SuburbanDrone) January 27, 2025
Powell will be hawkish this week. Trump’s attempt to take over monetary policy essentially guarantees it.
It’s important to recall that the last FOMC day was the worst day for Tech stocks in three years.
This can be it right here. pic.twitter.com/lBhgvdAeeB
— Mac10 (@SuburbanDrone) January 27, 2025
So, Donald Trump wants to boost tariffs, cut taxes and have the Fed trim rates all at the same time. I’m not sure he can really expect to have all three. My friend David Zervos at Jefferies said on CNBC that Jay Powell should listen to all external views on interest rates,…
— David Rosenberg (@EconguyRosie) January 28, 2025
