00:00Do you believe this is the direction of travel? This is the first of many votes that will look
00:04for higher interest rates. Absolutely. I think the three dissents from the presidents is what
00:11exactly we should expect right now. And those dissents were not done in a vacuum. They also
00:16are representing presidents who could not vote at this meeting. That is often what is done.
00:22And I also think many people on the board are leaning towards a rate hike as well. We've already
00:27gotten a lot of indication of that. And so I do think we do get rate hikes in September. I
00:32actually
00:32think today would have been better. But I expected them to skip today, even though there was a 30%
00:38chance out there that they would do it today, because we're starting to get weak. This is
00:43something that Kevin Warsh has said himself. We've had five years of inflation. It's not all the Fed's
00:47fault. But at the end of the day, it is the Fed's choice, as Jim pointed out, to do something
00:52about
00:52it. And we need to do something about this inflation. It has been around for too long
00:57and created a muscle memory. It's becoming the norm instead of the anomaly. And tomorrow,
01:02we're going to get that PCE data, which the reason why Beth Hammock sort of threw down the gauntlet and
01:07wrote the LinkedIn post hours before the Fed's blackout period, letting us know exactly how she
01:13felt about rates was because they were tracking the inputs on that number. And it will be 3.3%
01:18on the
01:19core. And on the super core, I think 3.7% super core services that is sticky and hot and
01:25hotter than
01:26it was at the beginning of the year.
Comments