F-E-D FED! FED! FED!

Chris humorously compares the Federal Reserve to the New York Jets—both infamous for their futility. Dive into his critique of the Fed's track record, from failed economic predictions to misguided policies. With 400 economists and countless theories, can they ever get it right? Discover why the Fed’s latest moves, including sizing up Trump, might be another misstep. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
F E D FED FED FED. Now, if you're not
a familiar with football and New York Jets, that's actually
me kind of taking the Jets cham j E T
S Jets, Jets, Jets and doing it for the FED. Well,
why would I do such things? Uh? Well, you know, honestly,

(00:38):
the Jets are kind of like, you know, an example
of futility in the NFL. And you know again, I
go to many Jets games, go to many Jets games.
Our accounting division to offer your own corporate and we
do a great spread. I go to many games out there,
But I am inherently a Giants fan. And I'm gonna
be honest, I haven't playing that well either. But I

(01:01):
thought about the FED, and I thought about the Jets,
and our old friend Nick Timorrow Silver at the Wall
Street Journal had a peace out and he said, the
FED is trying again to size up Trump. All the
Feds trying to size him up. You mean, you mean

(01:21):
those four hundred economists with PhDs that are always wrong.
And then you know there's two things in life and
certain death and taxes, death taxes, the Jets are going
to lose and the Fed is going to be wrong.
That list is it keeps getting longer, the Fed sizing

(01:47):
up Trump. Hey Nick, Nick again, this is again, he's
a you know, it's this. His job is to cover
the Fed. They call him the Fed whisper. He goes
to all the things and he writes about j. Powell
than all these wizards of smart Why, I don't know,
I don't know. I'm gonna throw us out there. When

(02:08):
have they been right about anything? Anything? We just watched
the Federal Reserve lower rates by one hundred basis points
since September, one hundred basis points. I don't know if
you've seen the tenure. It's going in the opposite direction.

(02:33):
That's never happened, never happened in history. Oh yeah, one
too long ago. Oh yes, inflation, it's just transitory. Sure,
it's transitory. We don't know what models they use. They

(02:53):
continue to cover these guys all the time. Well, you know,
we go to dual mandate, that dual mandate was a great,
greatest thing that the Fed ever got. Basically as they
get out of we screwed up every single time card.

Speaker 3 (03:07):
Yeah, but you know, no inflations running hot. But we
gotta do a mandate. We gotta deal with you know,
we're worried about the employment situation here in the United States.
I don't know exactly how they go about determining anything.
I actually thought about it, and I know I've cited
this sub references before here on the program. It was

(03:28):
a great South Park episode had to do with the
financial crisis. A lot of great clips I've used over
the years on the radio show from that episode and
one of us towards the end of the show where
one of the characters, one of the young kids, figures
out how the Federal Reserve and the Treasury makes decisions
on anything. Again, this is during the financial crisis. And

(03:51):
then they are in this dark.

Speaker 2 (03:52):
Room and they've got these well these economists wearing wigs
like the you know, the old fashioned like British long
wigs that you would see like in some sort of
British court drama there, and they're all sitting around and
they cut the head off of a chicken and let
the chicken run around, bleeding till it lands on a

(04:14):
spot on a board, and you know, sorry, we got
another church. Company's going down. They caught a head off
a chicken. Let the thing run around and it lands
on bail out. Well, I guess we're bailing them out.
And you know those other things that the chicken could
have landed on, like coup a tah. I mean, it
was just it was pretty funny, but it's pretty accurate too.

(04:38):
Four hundred economists, you got four hundred common who who
said that? You know, you put you know, a couple
of economists into a room, ten economists in a room,
and they got fifteen opinions. We got four hundred economists
in a room with PhDs that I've never had real
jobs in their entire lives. Now on, you're gonna get
quite a few opinions. But in my opinion, they are uneducated,

(05:05):
haven't been tested. Theories are great. Oh, we've got theories.
We've got theories, read write books, we do this, we
do that. You want to try applying your nonsense to
the real world. Yeah, I didn't think so. So the
FED is trying again to size up Trump, are they? Yeah? Good, luck,

(05:27):
good luck. But as far as track records are concerned,
Fed FED, FED, FED not much different than the Jets
watchdog on Wall street dot com.