The David Lin Report Will Fed Cut Rates To 0%? Former Fed President On Next Move | Thomas Hoenig
Oct 29, 2025
In this engaging conversation, Thomas Hoenig, former President of the Kansas City Fed and current Distinguished Senior Fellow at the Mercatus Center, discusses the potential for the Fed to cut rates despite a strong economy. He analyzes regional banking risks, the influence of new Fed Chair candidates, and the relationship between AI investments and labor dynamics. Hoenig also delves into the complexities of stablecoins, warning about the pitfalls of risky reserve assets and the implications for consumers and the banking system.
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Fed To Cut Now, But Stay Cautious
- The Fed will likely cut rates now despite inflation staying around 3% and economic strength.
- Chair Powell will emphasize employment and avoid strongly signaling further cuts immediately.
New Fed Chair Timing
- A new Fed chair is possible by January or February due to confirmation timing.
- The nomination will change market dynamics once announced.
Chair Selection Shapes Policy
- The Fed chair choice matters because the chair sets policy direction and influences the committee.
- Candidates vary: Warsh more hawkish, Waller dovish, Bowman mixed with balance-sheet hawkish leanings.