The Institutional Risk Analyst

Treasury Secretary Scott Bessent stated early in the Trump Administration that expanding the stablecoin market will create a "surge in demand for US Treasuries, which back stablecoins," but he was clearly mistaken. Growth in stablecoins has slowed dramatically as the value of bitcoin and other tokens has plummeted. Notice that Bessent has not had much to say on the subject of stablecoins recently as Treasury yields have steadily risen.

As we noted some time back, whenever the pseudo conversation in Washington regarding inflation (a/k/a “affordability”) becomes difficult, the BLS and/or the Fed moves the goalposts. Just as nobody in Washington wants to talk about the budget deficit or the impending collapse of Social Security, the conversation about inflation is totally contrived and false.

Senator Chris Murphy (D-CT) has already highlighted some of the most egregious instances of Trump, his family, and members of his administration using their positions of power to enrich themselves and do favors for their billionaire buddies at the expense of American taxpayers. Murphy has written a script for a Democratic House to use in impeaching President Trump.

The FOMC meeting this week with Chairman Kevin Warsh was about what we expected. Less is more in terms of forward guidance, maybe pivot to even less talk MT. Models being renovated, personnel evaluated. Maybe the end of the idiotic dot plots is in sight? No guidance will be forthcoming from the Chairman.