MIRAN **JUST QUIT** the Fed! RATE HIKES

Steve Myin, a key figure advocating for interest rate cuts and perceived as Donald Trump's shill on the Federal Reserve board, has resigned. This departure is necessary to accommodate Kevin Worsh, whose Senate approval means he will take a seat on the board. Jerome Powell, despite stepping down as Chair, will remain on the board, leaving no vacancy and thus necessitating Myin's exit. Myin's rationale for rate cuts, based on a weakening labor market, proved incorrect as the labor market has shown resilience, with strong private payroll numbers and positive retail sales data. Kevin Worsh's appointment signifies a shift in the Fed's stance. While Myin's departure removes a voice pushing for cuts due to labor market concerns, Worsh is expected to advocate for rate cuts based on the theory that artificial intelligence will lead to rapid disinflation. This theory aligns with the speaker's view on a long-term macro super cycle where AI-driven infrastructure spending could eventually lead to deflation. However, Worsh's past economic predictions, particularly his call for rate hikes during the lead-up to the 2008 recession, are viewed critically by the speaker. Despite this, the speaker believes Worsh might be effective in advocating for a hold on interest rates, potentially influencing Jerome Powell to join him. Recent commentary from Fed officials, including talk of potential rate hikes, is seen as an attempt to manage inflation expectations, which have shown signs of increasing. Market expectations, as reflected by the CME watch group, currently lean towards rate hikes rather than cuts, even extending to 2027. The speaker finds this outlook potentially incorrect and bullish for stocks, as Worsh's likely stance of holding rates could counter these expectations. The speaker concludes by promoting their YouTube channel and app for continued content and customized notifications.