Forward Guidance · Friday, August 7, 2026
The discussion highlights a shift in economic policy from a Fed-driven liquidity model to a more active 'statecraft' approach. This new regime is characterized by fiscal dominance, where government actions are more directly aimed at influencing economic outcomes, potentially to create a more level playing field for different economic classes.
“The, uh, the, uh, the Fed. And, uh, Japan intervention. And now the QRA news. And so I think, you know, that probably explains the gold move.”
“So, you know, what Bessen really did was just stifle the vol of the fixed income market and, and the FX market. So that you can still have that same life insurance recycling policy.”
“It's like how do you grow in economy from the top down and, you know, grow it for the middle and lower classes. And this has been a two-speed economy obviously. I think they're trying to figure that out and make it more level. But, uh, you know, that's that's what the new policy is. It's statecraft. It's not just watch the Fed.”