00:00I want your reaction. You know Kevin Walsh well. What is everyone getting wrong? And I say everyone,
00:04I mean the consensus view on their reaction to that news conference last Wednesday.
00:09I'm not going to characterize this as anyone's getting anything wrong or anyone's getting it
00:13right. What I'm going to characterize this as, Kevin is a masterful student of the market.
00:18Kevin has been at the Fed before. He understands the limited toolbox, but the effective toolbox
00:23that the Fed has. What Kevin is doing right now, and I think people don't like this,
00:28is Kevin is reverting the Fed to the historic norms of what the Fed did. We unfortunately,
00:36as newscasters or as market makers or as traders, we got spoiled from the 08 period on. From 08 period
00:43on, the Fed has been an open box. They've been completely transparent. They have not done
00:49anything that you wouldn't know they would do hours or weeks or months before they did it,
00:53and the market became addicted to knowing what the Fed was going to do. What Kevin is doing right
00:59now is he's trying to get the market off the addiction of me, the Fed chairman and the Fed
01:04board, having to tell you what we're going to do. And you, the market and you participants,
01:09you should go and participate however you think it makes sense for you and wherever you think the
01:14opportunities are. This is a tough transition. People liked having the answers to the quiz before
01:19they took the test.
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