Michael Nadeau

So we're still running large deficits, but we're not increasing them, right?

We're not increasing them like we were during the Biden years.

I think what happens on the margin there does matter.

So this is what was kind of leading into back in September, October saying, okay, well, liquidity looks like it's rolling over in the US.

We saw a lot of tightness in the kind of repo markets and in the banking sector liquidity.

um now we have a fed president coming in that we we you know i believe he's aligned with trump uh and and that's not the question the question is more uh what is that alignment where does that alignment go because um you know it's possible he's just and you think that you think that alignment that alignment goes with uh with a downturn of u.s liquidity basically you think that's what it means it's possible trump wants that

It's possible.

You know, this Kevin Washington, we're going to learn more and we're going to find out if he's, you know, sort of speaks like a politician or if he's sincere.

But he's he's some interviews that he was doing, even just in October, talking about the Fed needs to align with Trump's Main Street policies.

We need to reduce our balance sheet and take that money and deploy it to Main Street.

These are direct quotes from the guy who's now the Fed president just three months ago.

So he's talking like a politician talks to Main Street and to parts of the market, which is kind of... And you can imagine this is what he told Trump, right?

This is probably why he got the job.

So...

The big question for me and something I've been thinking a lot about is just is the most important thing to pay attention to populism in the United States right now in terms of we've already seen, you know, we just saw Mamdani get elected in New York and he's getting elected.

The reason he got elected is about affordability.

and bringing attention to these issues.

We've seen Trump talking, you know, trying to get, you know, let's cap credit card interest rates.

Let's get mortgage rates, you know, down.

Let's make homes more affordable.