00:00Mike is this essentially a done deal at this point. It's essentially a done deal. We know that John Fetterman
00:06the Republican Senate the Democratic senator rather from Pennsylvania joined with the Republicans to give the margin to Kevin Warsh
00:14yesterday. He's likely to do so again today. The Republicans had several votes that didn't show up yesterday. They didn't
00:22need to. So Warsh will probably be confirmed. They meet at 2 p.m. to vote on this could take
00:28a little while to happen.
00:30And then they have to send paperwork down to the White House. The president being in China. Not sure if
00:35the White House will receive it officially today. Then Kevin Warsh has to start divesting his rather large portfolio according
00:44to the agreement he made with the Office of Government Ethics. And then he can be sworn in. So it's
00:49possible he gets sworn in Friday when Jay Powell's term is up. But maybe more likely we see something Monday
00:55or early next week.
00:56With inflation numbers, Michael, hearkening back to the Biden era. I mean, we're still not at 9% CPI, but
01:036% PPI, 3.8% on the Consumer Price Index. Is this going to be a Fed that has
01:10to at least say it's thinking about hiking rates?
01:15They probably don't want to do that. And we do have another round of CPI and PPI readings plus a
01:21PCE before the next Fed meeting. So they will probably take out the bias.
01:27It's going to be interesting because we've had this basically the same format for the statement for quite some time.
01:33But with Powell gone, Kevin Warsh may want to change that.
01:36And, you know, he said he doesn't want to give any forward guidance. So we'll see what they say. We'll
01:41see if Kevin Warsh has a press conference and says something more.
01:45But they probably don't want to hint that they are raising rates because they don't want the market to get
01:50ahead of itself and to put us in a situation where they might be hurting demand enough to lead to
01:56contraction in the economy.
01:58We'll have to see how the war goes as well.
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