Well howdy there, internet people. It's Bell again.

So today, we're going to talk about Trump's pick and the market guiding the Fed.

We're going to answer a question from one of you, with another question from one of you.

Fair warning. This is going to be an information-dense video, focusing on the

economy. But even if you're not an investor or part of that class, it's important to understand

the discussion. Here's the first one. Bell, you seem to disapprove of letting the market guide the Fed and seem to want the forward

guidance to stay in place. I've heard Warsh and other people say that it creates a feedback loop,

where the market is reacting to the Fed instead of economic indicators. It made sense to me. Can you explain why you think

the market shouldn't lead the way in normal language?

Okay, so what's driving this question? The Federal Reserve was in the habit of hinting

about what it saw coming on the horizon.

This was referred to as forward guidance. Warsh wants to end that and said, quote,

Financial market prices are probably the most important source of information to guide central

bankers. But when all the financial markets

are doing is reflecting back what we've said, then we're taking the most important source of information

and we're being blind to it. Warsh's belief is that the markets are looking at what the central bank thinks will happen

and making decisions based on that.

He thinks the central bank should look at the markets instead

and make decisions based on what investors are doing.

If investors invested rather than speculated, that would be one thing.

But here's another question from one of you. Hi, Abel. Nobody cares about your negative comments,

as I said. I bought into SpaceX, and now I'm putting in more. The stocks are going to the moon

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