00:00 Speaker A

your new Fed chair. Kind of it’s a tricky situation, right? Because he’s got a relatively stable labor market, he’s got sticky inflation. What are you listening for? What are you going Is it the statement, the dot plot, the presser? What are you focused on?

00:10 Speaker B

Number one thing for me is going to be how he talks about inflation. He’s obviously cheering the news that the war seems to be coming to an end. He’s going to be looking for CPI to be going lower. However, he’s got to remember what Americans are feeling. Their wallets are feeling more expensive. Gas is still elevated, groceries are costing more,

00:27 Speaker B

mortgages are costing more. The way he discusses inflation is going to be really key in how he balances what he wants to see with how the country’s actually feeling.

00:34 Speaker B

He’s going to be looking to cut down communication. He’s going to be, as you guys were just talking about, bring down that balance sheet. Both of them to me say the same thing. He wants the Fed to be playing a smaller role.

00:43 Speaker B

He wants them to be less of the driver of this economy as you’ve seen with past Fed chairs. He wants their visibility in the system, their impact to be a little lighter, whether that’s balance sheet, whether that’s communications, is that getting rid of the dot plot, is that having his governors do less pressers, whatever it looks like, he’s trying to shrink that role down.

01:00 Speaker A

Why should investors, Jake, pay attention pay attention to what central bankers are doing all around the world?

01:07 Speaker B

Rates are a global market. Let’s look at what’s happened. The ECB on last Thursday raised rates. really attributed that to the war and what’s gone on there. This morning, the Reserve Bank of Australia holding rates steady. The Bank of Japan raising rates to 1%, the first time they’ve been that high since 1995.

01:21 Speaker B

We’re expected to see the Bank of England on Thursday hold rates steady. So a bit of a mixed picture. But the point for investors is this is a global market. These are global rates. They impact each other and they’re all answering the same question. What do we do with the biggest supply shock on record in the energy world?