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00:00What is your feeling about the Fed being under more of the executive branch's control, more input, as President-elect Trump would like to have in terms of interest rates?
00:08Is that sacrosanct to you?
00:09Do you believe that the Fed should maintain its independence, or do you feel like it's never really been that independent?
00:15No, I feel that it definitely should remain its independence if I'm holding a bond.
00:21It is certainly in the government's interest all the time to borrow and spend, particularly under your term, and then you let somebody else deal with the mess you created when they come to power, okay?
00:32So that's always the case.
00:34So it undermines the storeholder wealth.
00:36I think the Fed should target a real bond yield of 2% by and large, okay?
00:442% is not too high, real, and it's not too low.
00:48And they should target that kind of a real bond yield, which you can see, by the way, in the inflation index bonds pricing.
00:55I think that the cycles that we're going on from one extreme to another are very disruptive.
01:00But I think it's going to become a lot more political, particularly if there are problems, because the problems are going to be based on the Fed.
01:08And so it becomes political, and yeah, so I worry about that.
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