FED, Interest Rates, President Trump discussed on Capital Ideas Investing Podcast - 2017 Midyear Outlook: Markets and Economies

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It's something we discuss um and i think the the current fed is conflicted around this point now uh i think on 1 hand the janetyellen has dovish leanings says she's inclined to do less in terms of raising interest rates on the other hand i think they have an interest in getting interest rates closer to normal so they have that dry powder when the time comes and the other thing that is probably not understood her disgust and not is they also have an interest in shrinking their balance sheet she we inflated their balance sheets over four trillion dollars treasuries and mortgages um again in in light of them being interested in having bat capability back when f a recession would occur at some point here they're going to have to focus on the balance sheet and that will be there tool as opposed to raising shortterm interest rates and so we're looking for that to occur sometime around the end of the year for us to have more clarity as to how they're going to shrink the balance sheet nobody with our little bit about politics mcconnell political environment in which uh all these investment decisions or or taking place in judeai wanna i wanna start with you but let me just offer released the fought we know you do i look at all it's except in policy food uh for for our team and we are just in an unprecedented time in my view in terms of a how should we say at the unusual characteristics of the current american president and the way that um he's both challenging establishment behavior but also bringing the kind of sets of behaviors himself that are unsettling the world a win when we talked to officials and others across the world there are aspects of how this administration is conducting itself that are creating a anxiety and nervousness i think.

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