Hello,

Hello, Robocapitals, hope you're well.

So the Fed just released this mysterious report.

I don't know if you guys have heard this yet,

but you got to check this out. I think this may explain why

Jerome Powell just pivoted. We've got to remember that that is a big big deal.

Not only is there a hundred and eighty degree turn from higher for longer higher for longer than what all of a sudden oh yeah

sorry we're gonna go ahead and cut rates at a minimum minimum

of three times in two thousand twenty four that's the one that's a huge one eighty

but you've got to think about that through the lens of Jerome Powell

From a standpoint of psychology

Look if you're 67 years old or however old he is you know that this is your last

Hurrah and this is how history is going to remember you. So do you want history to

remember you is Arthur Burns or Paul Volker. Easy question, right?

But think about it, again, put yourself in his shoes.

If you create a recession, not that,

I don't want to give the Fed that much power but let's just assume that that's how the market

perceives it. Let's say we have this huge hard landing that's similar to the dot com or even like a GFC type thing. you know that yeah you caused a lot of economic pain, but history is going to remember you like Paul Volker.

Or, let's say another scenario would be that you bring down inflation and the recession isn't as severe.

They're still going to remember you like Paul Volker.

So by tightening too much or by keeping it higher for longer, there is no downside for Jerome Powell.

Absolutely no downside as far as how history is going to remember him.

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