And speaking of the Olympics ... is this as important as the medal count?
2/5
Japan is under a "state of emergency" and as Apple mobility shows, they are severely restricting their movements (the Olympics started July 23).
(Apple aggregates location data services for various areas)
3/5
Google also aggregates movement of their phones and they similarly show Tokyo businesses have essentially closed, mass transit is empty and even walks in the park are down since the opening ceremonies (July 23).
4/5
What did Tokyo get from the Olympics?
* $Billions spent on sports facilities that will rarely get used again
* massive disruption life and business, lost income
* no tourism
* A spike in delta variant cases that will last a while
The blowback will be big and profound.
5/5
Worth noting that former Prime Minister Abe was strutting around like a Peacock in front of the world at the closing ceremonies of the Rio games in 2016 celebrating that the next games would be in Tokyo.
He did not even attend the opening ceremonies last week.
nuff said
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The OMB Director and Acting CFPB Director @russvought laid out the charges of lying to Congress and mismanaging the renovation of the Fed (Eccles) building.
While the betting market still has Powell getting fired at less than 50%, it is now trending higher.
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The Federal Reserve Act says that a Fed Governor (including the Chair) may be removed “for cause by the President.”
However, “for cause” is not defined in the statute and has never been tested in court in this context.
I would argue "for cause" is not a disagreement over Monetary Policy ("too late" cutting rates), but can be lying to Congress and/or mismanaging the rules around renovating the Fed (Eccles) building?
Powell said this to the Senate Banking Committee on June 25, 2025, as part of the semiannual Monetary Policy Report to Congress.
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"Generally, I would just say we do take seriously our responsibility as stewards of the public’s money. ... There’s no VIP dining room. There’s no new marble—we took down the old marble, we’re putting it back up. We’ll have to use new marble where some of the old marble broke. But there’s no special elevators; there’s just old elevators that have been there. There are no new water features. There’s no beehives, and there’s no roof terrace gardens."
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Technically, Powell is correct because the renovation has not been completed. However, such details are outlined in some plans for the renovations.
Is this a big deal? No. However, if Trump is looking for ANY reason to remove Powell, this might be enough. And it might be enough "for cause" that the Supreme Court will uphold it.
Furthermore, no one in Congress wants to spend any political capital defending a $2.5 billion marble Washington, D.C. building with private elevators, beehives, and private roof terraces.
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Bottom line, Powell may have given Trump an opening to remove him. Will Trump take it?
Or, does Trump want/need "Too Late" Powell to stay as Fed Chairman until May 2026 to use as a punching bag?
Yesterday, Jim appeared on Bloomberg TV, warning that if the Fed cuts rates and the market thinks this is wrong, 10-year yields could surge through 5%.
(Perspective ... 10-year yields were last above 5% in October 2023 and as high as 4.85% in January).
🧵
2/8
President Trump disagrees with this thinking and believes the federal funds rate should be 1% right now.
From a "truth" posted on June 30.
3/8
If (or should I say when) Trump gets a Fed Chair to make 1% happen, how will the 10-year react?
Reminder of what happened last year to long rates when the Fed cuts rates (peach arrow) and the market does not think it's a good idea (cyan arrow).
I would argue that if the Fed cuts rates and you assume mortgage rates follow the federal funds rate lower (they may NOT be the case), home prices would rise, putting the monthly payment right back at $2,860.
Polymarket recession odds peaked at 65% on May 1st, the April ISM release date, suggesting Liberation Day and the 20% stock market correction did not damage the economy, as the "soft data" warned.
Subsequent April data confirmed this.
Will May see more of the same?
🧵
2/12
The prevailing narrative in the market for months has been that the labor market is going to fall apart, forcing the Fed to cut rates.
This has not happened, and so far, the "soft" (survey) data have been wildly off in predicting the economy.
3/12
ISM Employment upticked in May from April. The first monthly "May" data point suggests the labor market is still not weakening.