Hartnett Flow Show: Get Powell Out of There Now

Fed Chair Swap-Out Coming

Housekeeping: No Walkthrough this weekend. Bottom Lines are as follows

1. Still long Bonds, Int’l stocks, and Gold

2. Believes outright the Fed will cut soon now

3. Title likely refers to Powell and his successor as being the “two halves”

4. Time to start Boning up on Arthur Burns and how a dovish Fed chair behaves

5. We believe one thing that’s very new: Trump/Bessent will start pushing debt financing to the front part of the curve because Powell isn’t cutting. Trump literally said it Thursday/Friday. This will weaken the USD and keep deferred rates lower… They are looking past Powell at the next Fed Chair. Extended comment on this is footnoted along with a screen cap of Trump actually saying it.¹