129: The Quantum Trap

right.

So they haven't actually had the press conference yet, but the notes have been released.

Here's what we know.

The Federal Reserve is leaving interest rates in the United States unchanged after the September hike.

The rate pause was a 10 to 2 decision.

There were two dissents with Cook and Hammock dissenting in favor of a rate hike.

The Fed says economic activity is expanding at a, quote, stronger pace.

And Fed says inflation remains, quote, elevated and seeks more information.

The Fed notes that the geopolitical developments are contributing to uncertainty.

And the Fed asserts that, quote, the committee will deliver price stability.

Hmm.

Okay.

So essentially, yeah, they're still signaling as much as they do signal that they're going to raise rates in December.

But they did not raise rates today as expected.

The reason why, okay, so why is it expected? Why was it as expected? It's not guaranteed the rate hikes will do any good.

This is a really tough one for old Kevin.

I don't know why the hell he took this job.

You see, you hike rates.

Well, the AI trade gets even harder to fund.

GDP starts to fall off a cliff.

But the housing market, we don't talk about the housing market a lot on this show.

Because it's not really driving global liquidity, but it is absolutely driving the U.S. market.

And housing will not respond well to a rate increase.

So that's another calculus.

But the worst part of it might be for Kevin, if you could have empathy for the Fed chair.