Courtney Brown

Totally changed his mind because of the inflation data and other economic indicators that have come in this week.

So I buy into your theory, Kai.

This is something that, again, referencing Governor Chris Waller, who, you know, we should just say is an influential member of the Fed board.

Oh, that's right.

Who could forget?

So he mentioned this idea that inflation has been stuck over 2% for some time now.

And he gave this fantastic analogy of a coin flip to describe how consumers might start thinking about inflation.

Basically, if you flip a coin three times in a row in its heads, the consumer might start to think that maybe the coin is rigged or something, and he can't quite explain why that happens.

But it's...

It's kind of the same idea with inflation.

If we keep getting higher inflation, consumers might start to believe that this is just the new normal.

And that's when the Fed starts to get worried, right?

Consumers start to believe higher inflations are coming.

They start to adjust their actions in ways that make inflation more embedded in the economy and harder to beat.

Scary prospect, I think.

And like when you talk to people on Wall Street, this is the possibility that they always bring up, you know, what if what happens if there is, you know, another type of recession, economic shock.

And the U.S.

needs to spend money to help the American people.

And the bond market says, no, no, no, no, no.

We're not we're not doing that anymore.