FULL Summary: What Powell (Fed) *JUST* Said

And remember, tonight at 11:59, we have

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househack.com. Well, JPAL just talked

and as expected, we didn't get any kind

of monetary policy comments, but that

was the intention. We already knew this.

We were looking for what kind of hints

was JPOW going to give us? Was he going

to try to sandbag the next Fed chair

like TS Lombard says? Remember that's

currently the idea that the reason JPAL

sandbagged and said, "Ah, we're not

ready for uh a rate cut." A rate cut

isn't a foregone conclusion in December

was just so that Waller and Mary Daly

could set up the rate cut again to

depower the Fed chair before the new Fed

chair gets announced. That's at least

what companies like TS Lombard are

saying is the current popular opinion of

what Powell is trying to do.

depprioritize the the power depower

people like Kevin Hasset whom of course

we expect uh to be chosen as a Fed chair

we who will take over in May uh probably

this week. Trump will probably choose

him this week. Keep in mind that we will

still not have Kevin Hasset at an actual

meeting until June of next year. So

you've got like seven months to wait

still. Anyway, so what happened here?

Like what did we actually get? because

we didn't actually get Powell

sandbagging the next Fed chair. Instead,

what we really got was a euphemism for

bagging on Donald Trump. This whole

thing was a euphemism. In other words, a

you may as well just say it, but you

can't meeting of bagging on certain

Trump policies by propping up how great

history is and how obvious it is to do

certain things. I'll give you some

examples. They made very clear

comparisons to wage and price controls

and any kind of government directed

investments as centrally planned choices

that the government should not do that

the free market is way better at

handling that other than in some

extraordinary

uh circumstance where both you know

sides of the political aisle need to

come together to do something. Other

than that, you're better off doing

nothing. And George Schultz, who this

was a whole honorarium form, was

basically pivotal in back in the 70s in

helping remove wage and price controls,

but also try to bring democracy and free

markets to sounds crazy, but Russia

through, uh, the then president of the

Soviet Union, uh, Mik Gorbatrov, uh, and

then of course to China. Now that didn't

really work, but Powell Condisa Rice and

the other panelists from Stanford, they

really talked up this idea of how the

role of the government is to just get

the f out of the way, not have uh

controls or limitations on uh uh labor,

on um uh you know, businesses or on the

markets and really take this LZair

approach, this hands-off approach. They

specifically elevate George Schultz as

somebody who's a labor economist whose

principles would be perfect right now.

And that's why the whole time I

basically heard tariff suck. Donald

Trump, stop investing in companies.

Donald Trump, stop using funds or

whatever to try to direct investments.

Just let the damn economy function

because the freer you let the economy

work, the better the outcome will be for

everyone. In fact, they say, quote,

"People will do what's best for them,

which collectively tends to lead to the

best outcome, not the government acting.

The president shouldn't worry about some

things. Let the market play it out. The

government should only get involved when

something is desperately needed." And

then of course they actually talk about

how after the institution of certain

price controls or income controls back

in the 70s, how we ended up leading and

walking into recessions when all of a

sudden we created this pentup

problematic equilibrium that turned into

a recession. And then of course they

talk up Paul Vulkar, how Paul Vulkar had

the balls to raise rates, to break the

back of inflation, maintain the

independence of the Federal Reserve, and

basically set us up for 40 years of

disinflation. So they're really trying

to credit Schultz as setting up 40 years

of disinflation because Schultz had a

lot to do with backing Milton Friedman

and Paul Vulkar. So Schultz was

basically like the sidekick for Paul

Vulkar, Milton Freriedman, and Jerome

Powell is hook, line, and sinker on

board with his principles. He even says

that Schultz, Vulkar, and Freriedman

were all on the right side of history.

When stagflation started, Vulkar had the

answer. When there was a question of

rising unemployment and rising

inflation, Vulkar had the answer. They

went full vocal in this meeting which is

basically just a reiteration that a

command economy or a centrally planned

economy fails that you should let the

economy operate and ultimately you

shouldn't have any kind of government

controls again euphemism for at this

point tariffs. Now they did say well JPL

even said this himself. He says you know

we've kind of settled the issue of the

wage and price controls like price

ceilings then but there are still some

issues left that you know we could learn

from with Schultz and that would almost

certainly be tariffs and getting rid of

tariffs. So this whole thing was really

not supposed to be any kind of guide in

the near term. It was really just, I

feel, like an economic middle finger to

Trump and Trump's policies. That's all

this really was. And it was an

opportunity for Powell to sort of give

like a little middle finger farewell, if

you will. Now, what does it actually

tell us for policy going forward? Not

terribly much. It just actually, if

anything, is slightly hawkish because

remember what they said when they

invoked Vulkar. when we had rising

unemployment and inflation, Vulkar had

the strength to have uh uh you know

basically the power to raise rates and

to actually do it to not paperhand it to

raise rates and crush the back of

inflation. So it's kind of a way of

saying hey you that's exactly what

Powell will push for as well and that's

why I think you're also setting up for

that hawkish cut. Now, keep in mind we

do have a coupon code expiring over at

meetke.com. So, make sure you check that

out for the Meet Kevin membership. And

of course, make sure you have that uh

take advantage of that Cyber Monday

coupon for Reinvesti. We're doing a

massive price increase after this

expiration at 11:59 p.m. So, you may as

well get in and then we can stop talking

about coupons for a while. So, really,

that's what JPAL had for us. Little bit

of a hawkish lean. not supposed to be uh

something that uh is uh you know much of

a monetary policy guide, but otherwise

that's all you really missed. So with

that, thanks so much for watching,

folks, and we'll see you on the next

one. Goodbye out there and uh good luck.

>> Why not advertise these things that you

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>> We'll we'll try a little advertising and

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>> Congratulations, man. You have done so

much. People love you. People look up to

you.

>> Kevin Pra there, financial analyst and

YouTuber. Meet Kevin. Always great to

get your take.

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