Jordi Visser

So I don't agree with the fact that they're not being more aggressive, but I understand that they can't really be cutting rates aggressively when you've got inflation kind of poking its head, you've got parabolic moves, and at the same time, you have a stock market that has moved higher and is at all-time highs.

Yeah.

You know, I wrote a paper on time and just this whole concept that when things are moving at an exponential pace, everything is kind of vulnerable here.

If you're a VC or you're a private equity firm or a private credit firm or anything related to long duration software where valuations are high,

What is happening in all these markets, including commercial real estate, if we're not going to have any people working in five years, what do we need commercial real estate for?

If we're going to have deflation in humanoids in five years, why are we going to have rates at anything but zero?

This is the problem is that we've entered a world where AI is moving so fast, faster than we can deal with it as a society.

The Fed should be thinking more forward looking.

Now, this is the argument that Scott Besant has made.

This is also what Rick Reeder has agreed with, which is this is more like coming out of the Internet in the way that Greenspan dealt with things where he was willing to cut rates even as the stock market was raging.

I think we're going to be in that debate for a long time because, again, the acceleration that's happening on artificial intelligence that we've just seen in the last three months with the software side, the disruption that it's having, all long duration assets are under question.

Well, let's go through the chain of events.

I mean, Waller was up for it, then Hassett was, and then Warsh went into the lead.

Every time someone gets the lead, whether you agree with Donald Trump or not, since he's making the final decision, he seems to really be on X, focusing on what people are saying.

And the biggest critique, so in Hassett, you end up with a scenario that people are worried about the credibility of the Fed.

They're worried that he's just a yes man for Trump.

Warsh gets in.

Warsh has been hawkish during the great financial crisis.

It's very difficult for you on one side to say, OK, you're going to cut rates, right?

We need him to be down 100 basis point, which is clearly what Trump wants, and then put someone in that doesn't agree.