Forward Guidance Fed Embraces "Run It Hot" For Powell's Final Months | Weekly Roundup
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Dec 11, 2025 The hosts dive into the Fed's pivot towards a 'run-it-hot' strategy, amidst fresh liquidity injections and evolving market dynamics. They discuss inflation psychology and its impact on long-term yields. Attention shifts to China’s export struggles and the implications for U.S. trade. The conversation also explores asset selection, favoring metals and Main Street over tech giants. Additionally, they highlight wealth inequality's social consequences and the youth's shift towards practical skills amid changing economic landscapes.
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Job Gains Skew Toward Healthcare For Boomers
- Labor market growth is skewed toward healthcare services, reflecting an economy serving older cohorts.
- Tyler Neville points out 83% of new NFP jobs this year were in healthcare services, illustrating K-shaped growth.
FOMC Consensus Looks Fragile
- Fed dissenters shifted positions, signaling messy consensus next year and potential political influence on appointments.
- Felix Jauvin warns FOMC dynamics could be turbulent as new faces arrive.
Watch Fiscal And Banking Triggers
- Expect fiscal policy, bank regulation loosening, and targeted tax incentives to amplify a run-it-hot outcome.
- Felix Jauvin advises watching fiscal actions and banking rules as triggers for Main Street lending and inflation.