Milk Road Macro How The Fed's Mistakes Push Markets Higher w/ Chris Whalen
Sep 16, 2025
In this engaging discussion, Chris Whalen, a seasoned macro analyst and chairman of Whalen Global Advisors, sheds light on the intricate relationship between the Federal Reserve and U.S. politics. He argues that inflation isn't coincidental but a deliberate strategy, and warns of a looming Treasury market collapse. Whalen also presents a provocative comparison of gold versus Bitcoin as safe-haven investments. With over three decades of financial industry experience, his insights are both compelling and crucial for understanding the current economic landscape.
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Fed Split Mirrors Mixed Economic Data
- The Fed may lack a majority for an immediate cut because committee views are split and economic signals are mixed.
- Markets show contrary indicators: parts of the economy roar while others (lower-income households) struggle.
Prepare For Sell-On-News Market Moves
- Expect market volatility regardless of a cut because traders often 'sell the news' and buy on rumors.
- Be cautious about rewarding rate cuts before addressing the budget deficit, Whalen argues.
Bad Timing Created Excess Liquidity
- The Fed's timing since COVID has been poor, creating excess liquidity and muddling policy signals.
- That poor timing raises the risk the Fed could 'mess up' shrinking the balance sheet and trigger market stress.
