TRUMP to REPLACE Fed Powell w/ Bessent (WHITE HOUSE RAPIDLY DENYING)

House is denying this report that came

out that Bessant might be a successor

replacement to Jerome Powell. We still

should talk about the potential of

Besset because often things that we are

told are false end up being true. They

just didn't want that information to get

out yet.

I definitely think it's possible that

Bessant could be an option and it's

likely that the White House wants to

downplay this news because Besson is

literally in the middle of Chinese

negotiations today. So, it's a horrible

time for this news to come out because

it's like, ah, the trade negotiation.

Oh, looks like you're already lining up

your next job. What good is there to

talk to you? You know, it it does it

certainly doesn't help in negotiations.

That's my take. So, kind of interesting,

but let's speculate anyway on the idea

of uh Besset replacing JPAL. That's

coming anyway in May of 2026. Somebody's

going to be the replacement. Uh and it

doesn't surprise me at all that Bessant

would be an option. We have seen this

Treasury to Fed move in the

past. Bessent emerges as potential

contender to succeed Fed Powell. No way,

dude. What?

Donald Trump to replace Powell

potentially with Treasury

Secretary Bessant. Now that would be

really interesting because this would be

like a Yellen, you know, in reverse

where Janet Yellen was Fed chair uh and

then became Treasury Secretary under

Biden. This would be like the reversal

where you get Bessant get into the Fed.

Now, that's really interesting because

Bessant's been begging for the long end

of the curve to come down and Treasury

yields to come down. If Bessant came in,

he would just cut rates to zero. Now,

interestingly, the concern everybody

would have about the Fed cutting rates

to zero would be that

uh the Fed will induce inflation. But

Besson as Fed chair could actually be

really bullish. uh very bullish. You

know, this would be uh May 26. So, this

this is about 11 months

away. And you know, this is just

reported right now. So, a lot could

change, much could change, but he's

basically he's doing his sort of trial

phase right now as Treasury Secretary.

If Bessen gets chosen as Fed chair in

May of 2026, I actually think it's very

very bullish because he's going to my

take he'll cut rates to zero

rapidly. Uh risk is inflation but uh

personally and you know this uh I don't

think we face

uh major inflation risks. What we really

face are labor market risks. But the

problem is labor is very lagging. Labor

is very

lagging. Uh if labor doesn't collapse

before May 2026,

uh Bessant could help stave

off, you know, an impending labor

collapse. Now, you know, it's possible

that it's too late by then, right? if uh

Powell stays restrictive for too long,

you know, before Labor rolls over, Labor

could turn roll over basically before

Bessing gets in. But, you know, I'm I'm

not, you know, my my sort of bottom line

on it. Uh not worried about, by the way,

this Bessant potential huge news for

real estate. If we get Bessant in May of

2026, I think we potentially see housing

skyrocket because they cut rates to zero

again, which all of a sudden makes House

hack salivate. This idea of Bessant

coming in during midterms before midterm

elections before Republicans have to go

fight Democrats and Democrats go, "Look,

they're author authoritarians." You're

going to get Besset going, "Yeah, we

might be authoritarians who just cut

rates to zero." And Trump's going to go,

"I lowered interest rates for everyone.

Under Biden, you had mortgage rates at

7%. Under me the first time, you had

them at 3%. Now you've got them back at

3%." So, the market has spoken. Now,

obviously, a lot happened in the

meantime there. It's a massive

oversimplification, but it's the perfect

pitch to Americans. Set up zero interest

rates by uh the midterms next year. Huge

for real estate. that actually makes

this Q4 more important. And mind you, as

rates start trending down, we're going

to end our uh, you know, 5% uh uh

offering. Obviously, if you're in it,

you'll keep your 5% through conversion.

But what we're offering people right now

is if you invest as a nonacredited

investor to house hack, you get a 5%

yield plus all of the upside in the

stock. There's no premium on

convertability, which is great. So your

stock can your you know that 5% yield

converts to stock if our valuation is

higher in a few years and uh and then

hopefully we can IPO this puppy and it's

really really exciting. So we think you

know you get a yield between now and

conversion which is awesome plus the

upside you get downside protection too.

Obviously read our paperwork over at

houseack.com and you can invest over

there. But really broadly for real

estate even for yourself you know this

if Bessant does get chosen and ends up

implementing this sort of zero rate

policy which is my assumption you know

you could see Bessin and not get a zero

policy but I don't know because I think

Besson and Trump all of their commentary

has been around zero inflation and I

kind of agree with that. I don't think

corporations have the pricing power to

create inflation even in the face of

tariffs. It's more likely to just hurt

earnings per share, hurt the labor

market, which also leads to joblessness.

So either you crash the economy into a

recession, you get joblessness, and you

get low rates, or you get the economy

skating by, tariffs crush the economy a

little bit, but not enough to go into

recession, but enough to say, let's try

to stimulate again, get rates to zero.

Best will be the perfect face for that.

and it'll be a boon for real estate.

Now, it could also be a boon for stocks,

frankly, uh but who knows because if

earnings are getting damaged, then that

could al obviously also show up in

earnings. I think in the long term,

though, we're going back to zero rates.

We don't know exactly when, but I think

this Bessant move uh is is uh setting up

perfectly and politically for midterms.

Great for real estate. Excellent news

for house hackto hash. a little biased

on that one. Obviously, it's my real

estate startup. Inflation uh much more

worried about labor, especially uh with

AI, which is heavily deflationary, mind

you. Like AI is ridiculously

deflationary. Uh it is, you know,

innovative destruction basically of

cost. Uh and it's a good thing for the

economy because eventually it'll lead to

more growth, but it's a bad thing for

labor in the near term combined with

recessionary dynamics that we have now.

Not just sort of like the uninverting of

the yield curve, which typically always

occurs right before a recession,

declines in you know travel, declines in

uh uh you know uh business certainty

thanks to the tariff warfare, uh

declines in the household unemployment

rate, uh the rise in the unemployment

rate. We've already seen

um you know construction employment

falling. I mean there there valuations

at at relatively high levels. All of

these things combined lacking lack of

pricing power. Corporates uh yes the

stock market is propped up by corporate

buybacks but corporations also have a

historical tendency of buying back

stocks at the wrong time. Like usually

during euphoric periods or times when

you know stocks are going up,

everybody's making money, everybody's

happy. It's kind of a bad time to buy

back stock usually. Anyway, all those

things together could create the

conditions for a recession, which if

Jerome Powell today cut to zero, I I

think our recession was risk to zero

because we could still sustain that job

market for longer. Uh Besson, I think,

would do that. The problem is, is

Bessent going to be too late? I don't

know. That's the big question. I think

that's where if we can get through

Q3 and we can make it to Besson, that's

money printer. This guy's gonna be money

printer man. So like to me, Besson

equals

uh double money printer

man for for whatever kind of phrase that

might be. Let me see if there's any

other news because I just Other

contenders under consideration include

Kevin Walsh

uh for Treasury Secretarium or sorry for

for Fed chair. And there is no article

on this right now. It looks like I don't

know if they're just reporting this on

Bloomberg TV or

where. No, see on Bloomberg TV they're

just talking about labor protests. Let

me see if there's anything else on this.

But this is very interesting to me.

Yeah, here it is. Oh, there's the

Bloomberg

piece. A growing chorus of advisers

inside and outside of the Trump

administration are pushing to name

uh Scott Besson, current Treasury

Secretary as the next chair of the

Federal Reserve. President Trump said

very on Friday that he would name a

successor very soon to replace Jerome

Powell, whose term ends May of 2026. The

smallest of candidates under

consideration includes Kevin Walsh, a

former Fed official whom Trump

interviewed for Treasury Secretary in

November. But Besson, who is leading

Trump's effort to kickstart the economy

with sweeping changes to trade, taxes,

and regulation, is also now one of the

contenders for the job, said people,

said the people who requested anonymity

to discuss the private conversations.

Formal interviews for the position have

not begun. Two people said Bessant says

he has the best job right now and the

president will decide. Given the amount

of trust and confidence the global

financial community has in Bessant, he's

an obvious candidate. That's true.

Remember after April, markets rallied

every time Bessant came on TV and sold

off every time Lutnik

Slutnik came on TV or Peter Navaro came

on TV.

Uh, Besson has been at the forefront of

negotiations on the US China trade deal,

arguably the most important of the packs

the president is seeking to forge. I

agree. Scott Basson proved he could

implement President Trump's agenda

during an incredibly turbulent first six

months, says Steve Bannon. Oh, come on,

Steve. We haven't proven anything yet,

you freaking shill. Uh Powell and Fed

officials have held interest rates

steady in 2025, arguing the patient

approach is the way to

go. Besser Wash would give the benefit

of the doubt to the f financial

community that they would preserve the

independence of the Fed. Yeah, I don't

know about that. Economist and Trump

ally Art Laugher, Kathy Wood loves him,

said Besson is wonderful, but he already

has a job and his specialty is not

monetary policy. Yes. So

what? That's

interesting. I actually

think that's uh that's pretty bullish.

Uh big fan of

that.

So I'm excited about that. That's very

very

good. The problem again though is you

have to get through the pain of about

the next six months. Keep in mind, by

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