Jim Bianco

And we know what Trump thinks about interest rates.

And that person's going to want to have lower rates.

But if he does say that, then maybe the market will take it a little bit differently.

And we'll see if he does.

But most of the times, he'll just say he's going to be data dependent.

And it depends on what the data is.

I think they are at least being forced to acknowledge fiscal dominance, that the fiscal situation is important.

Basically, the funding market, the repo market, which funds the $38 trillion Treasury market, is too small.

It's too small because the Fed has been doing QT and reducing reserves.

Those interest rates, repo rates, have been going up.

Now, one answer could be to tell Congress, you can't spend as much money.

You can't run as big a deficit because the funding markets can't handle that size of a market.

But if the Fed wants to elect to let's expand the funding markets to meet the size of the bond market,

You're telling Congress, go ahead, spend more money, run bigger deficits.

We've got your back.

We'll continue to expand that funding market to meet those goals.

And the biggest driver of inflation over the last couple of years, other than the supply shock that we had in 21, has been government spending.

And they seem to be encouraging more government spending.

Bob, do you agree with that?

We're going to get a new Fed chairman.