Let’s navel gaze the Fed’s new playbook before the market does.
With Stephen Miran as governor, the Fed is unlikely to simply steward price stability.
Instead the US gunna power broke a lil’ sumthin’ sumthin’
The Fed will use every tool, from tariffs to currency intervention to gold sales, to advance U.S. strategic interests.
Right, listen up! It’s hereby declared by yours truly that the bread-and-honey and the bluey shall now be in cahoots, proper sorted, no muckin’ about!
Let’s break that down:
Bread-and-honey = money (Cockney rhyming slang)
Bluey = note or a policy slip (stretching typical slang here for monetary terms)
In cahoots = working together
Proper sorted = in sync, coordinated
Monetary policy is now inseparable from trade and security policy. This is a vision that echoes Elbridge Colby’s call for greater burden-sharing and a more muscular U.S. posture.
A Fed (led by 🤔) Miran will tolerate higher rates and a stronger dollar if it means boosting U.S. manufacturing and extracting concessions from trading partners. Expect more fiscal coordination with Treasury, more creative legal maneuvers, and a willingness to let volatility run if it serves a bigger goal.
The “rules-based” era is over; we’re in the age of opportunistic, multi-dimensional policy.
Key takeaways:
The Fed’s toolkit is expanding - no longer limited to rate moves.
Geopolitics matter as much as macro data for Fed forecasting.
U.S. assets may be more volatile - but that means traders gonna trade.
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