Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Well, and the Fed's a different argument. I don't think
we're ending the FED anytime soon. I don't think our
next guest thinks so either, Richard rosso's with a certified
financial planner. Uh, five point fifty two is our time
early in the morning, Richard, let's start with the taj Mahall.
I don't know if you I don't know if you
saw President Trump taking the tour of the Taje Mahall.
(00:21):
That's going to be the new FED building, the renovation
of the FED building. That's way, way, way over budget.
But he kept calling j pol out over you know,
things that he was seeing and how much the cost
of her runs were. That was kind of fun to watch.
Speaker 2 (00:36):
That's like you out for dinner with your new bow
and your X comes up to the table and you
just get all flustered and embarrassed, and it was, you know, yeah,
let's put it this way. But here's the one thing
I've noticed about President Trump. When he meets you in person,
all of a sudden, then he then humanizes you, and
(00:59):
he changes his tune a little bit, like he gets
a little soft in a good way. And that's why
I think that again, and this is all anecdotal qualitative stuff.
But I think he you know, I don't think he's
gonna let Powell go. And we all also have signs
that when he does mention that the market goes into
a free fall, even when it's in a confirmed uptrend.
(01:22):
So why rock the boat when we're so close to
Powell being out the door? Because when it comes to markets,
markets look forward at least nine months, they already got
him gone. As soon as as soon as Trump go ahead,
goes ahead and picks his makes his selection, the markets
won't even be listening to Powell too much anymore. Yeah,
(01:44):
So why rock the boat?
Speaker 1 (01:46):
True enough, but who are president of the president of
the United States? You appointed the guy? Uh? Shouldn't the
president have the ability? And this is part of the
argument too, does the president have or not have the
ability to fire the head of the fan?
Speaker 2 (02:00):
Well, there there are arguments on both sides of it.
And here's the point though probably so. I'm not an
expert in that particular area, but I would think he
does or he's going to do what he's doing, which
is pressuring Powell to leave. And the more he pressures
Powell to leave, even though he has that look on
his face like he just swallowed a frog. He he's
(02:24):
not going anywhere. He digs in his heels to show
that the FED is independent. So it's this tug of
war and the market and our four oh one ks
are sort of in the middle of that. And that's
where it's more of a delicate dance than this tug
that we're seeing. And I think that the president realizes
that with the help of Scott Beston, who absolutely understands
(02:47):
markets very well.
Speaker 1 (02:48):
Do you think he's the next FED chairman?
Speaker 2 (02:51):
I don't.
Speaker 1 (02:51):
I don't.
Speaker 2 (02:52):
I we'll see, We'll see Jimmy. We can make a
bet we'll see each other. Who ows each other a
state dinner? But I think it'll be Kevin Hassen. I
think Scott Besson's too valuable where he is, but I
could be absolutely wrong the way he is shafting policy.
The odds are You're probably right.
Speaker 1 (03:10):
Let's look at interest rates right now. Obviously they haven't moved.
I'm guessing you don't think that j Powll is going
to make any change to interest rates this week, even
though the FED is meaning again, well, do you think
he's making a mistake by not lowering interest rates and
what would happen. Let's say they made it a surprise
announcement that they're going to lower the FED rate by
(03:30):
twenty five basis points or whatever it would turn out
to be. How do you think the markets would react
to that?
Speaker 2 (03:37):
I think the markets have already priced it in to
some degree and understand there's going to be at least
one whether it comes in July or September. You can
argue that on both sides of the fence that Powell
is always first of all, Fed's always late, So that's
one thing we have to understand. And even though rates
could go lower, and there are times where he's lower
rates when inflation was higher, I think we're looking past
(04:01):
it overall. So do I think you should at least
lower them twenty five basis points?
Speaker 1 (04:07):
Yeah?
Speaker 2 (04:07):
I do. But Trump wants something much more, much more
majestic than that, and frankly, that's not really what the
what the economy needs right now. It's moving along, it's
picking up steam. You know, we're starting to get some traction.
Why lower rates so dramatically, It's it's not going to
(04:28):
help anything. I understand they're looking at it from a
debt perspective as well, so just let the market do
what the market does. We want free markets, right, that's
what we promote. So let the markets do. And interest growth,
economic growth, inflation that dictates where yields go. So let
yields do what they're going to do. The FED can
only manipulate the first the beginning of the yell curve,
(04:51):
the first part of the yell curve to lower rates.
And do I think it's going to happen. I do.
I just don't think it's going to happen in July,
all right.
Speaker 1 (05:00):
It is always good to talk to you appreciate it.
Richard Rosso, Certified Financial Planner. It's five fifty seven
Well, and the Fed's a different argument. I don't think
we're ending the FED anytime soon. I don't think our
next guest thinks so either, Richard rosso's with a certified
financial planner. Uh, five point fifty two is our time
early in the morning, Richard, let's start with the taj Mahall.
I don't know if you I don't know if you
saw President Trump taking the tour of the Taje Mahall.
(00:21):
That's going to be the new FED building, the renovation
of the FED building. That's way, way, way over budget.
But he kept calling j pol out over you know,
things that he was seeing and how much the cost
of her runs were. That was kind of fun to watch.
Speaker 2 (00:36):
That's like you out for dinner with your new bow
and your X comes up to the table and you
just get all flustered and embarrassed, and it was, you know, yeah,
let's put it this way. But here's the one thing
I've noticed about President Trump. When he meets you in person,
all of a sudden, then he then humanizes you, and
(00:59):
he changes his tune a little bit, like he gets
a little soft in a good way. And that's why
I think that again, and this is all anecdotal qualitative stuff.
But I think he you know, I don't think he's
gonna let Powell go. And we all also have signs
that when he does mention that the market goes into
a free fall, even when it's in a confirmed uptrend.
(01:22):
So why rock the boat when we're so close to
Powell being out the door? Because when it comes to markets,
markets look forward at least nine months, they already got
him gone. As soon as as soon as Trump go ahead,
goes ahead and picks his makes his selection, the markets
won't even be listening to Powell too much anymore. Yeah,
(01:44):
So why rock the boat?
Speaker 1 (01:46):
True enough, but who are president of the president of
the United States? You appointed the guy? Uh? Shouldn't the
president have the ability? And this is part of the
argument too, does the president have or not have the
ability to fire the head of the fan?
Speaker 2 (02:00):
Well, there there are arguments on both sides of it.
And here's the point though probably so. I'm not an
expert in that particular area, but I would think he
does or he's going to do what he's doing, which
is pressuring Powell to leave. And the more he pressures
Powell to leave, even though he has that look on
his face like he just swallowed a frog. He he's
(02:24):
not going anywhere. He digs in his heels to show
that the FED is independent. So it's this tug of
war and the market and our four oh one ks
are sort of in the middle of that. And that's
where it's more of a delicate dance than this tug
that we're seeing. And I think that the president realizes
that with the help of Scott Beston, who absolutely understands
(02:47):
markets very well.
Speaker 1 (02:48):
Do you think he's the next FED chairman?
Speaker 2 (02:51):
I don't.
Speaker 1 (02:51):
I don't.
Speaker 2 (02:52):
I we'll see, We'll see Jimmy. We can make a
bet we'll see each other. Who ows each other a
state dinner? But I think it'll be Kevin Hassen. I
think Scott Besson's too valuable where he is, but I
could be absolutely wrong the way he is shafting policy.
The odds are You're probably right.
Speaker 1 (03:10):
Let's look at interest rates right now. Obviously they haven't moved.
I'm guessing you don't think that j Powll is going
to make any change to interest rates this week, even
though the FED is meaning again, well, do you think
he's making a mistake by not lowering interest rates and
what would happen. Let's say they made it a surprise
announcement that they're going to lower the FED rate by
(03:30):
twenty five basis points or whatever it would turn out
to be. How do you think the markets would react
to that?
Speaker 2 (03:37):
I think the markets have already priced it in to
some degree and understand there's going to be at least
one whether it comes in July or September. You can
argue that on both sides of the fence that Powell
is always first of all, Fed's always late, So that's
one thing we have to understand. And even though rates
could go lower, and there are times where he's lower
rates when inflation was higher, I think we're looking past
(04:01):
it overall. So do I think you should at least
lower them twenty five basis points?
Speaker 1 (04:07):
Yeah?
Speaker 2 (04:07):
I do. But Trump wants something much more, much more
majestic than that, and frankly, that's not really what the
what the economy needs right now. It's moving along, it's
picking up steam. You know, we're starting to get some traction.
Why lower rates so dramatically, It's it's not going to
(04:28):
help anything. I understand they're looking at it from a
debt perspective as well, so just let the market do
what the market does. We want free markets, right, that's
what we promote. So let the markets do. And interest growth,
economic growth, inflation that dictates where yields go. So let
yields do what they're going to do. The FED can
only manipulate the first the beginning of the yell curve,
(04:51):
the first part of the yell curve to lower rates.
And do I think it's going to happen. I do.
I just don't think it's going to happen in July,
all right.
Speaker 1 (05:00):
It is always good to talk to you appreciate it.
Richard Rosso, Certified Financial Planner. It's five fifty seven
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