I don't think people realize how significant the latest Powell pivot is here. The Fed is taking their foot off the stimulus accelerator, right when Trump needs them the most. He's then using the "we need more fiscal stimulus" as cover when he knows it's not coming. /1

Additionally, Fed members are dialing up the pressure by complaining about corporate real estate imploding. This is the one thing you don't want to remind Wall St. of now and yet they're seemingly trying to talk equities into crashing. Consumer confidence is a dumpster fire.. /2

...right now and yet the Fed is jawboning how consumers aren't going spend if the virus resurges. It's not wrong, it's just not the happy talk you'd expect for a Fed that's saying they're pulling stimulus back until the election (when Biden's elected). Rosengren even went... /3

..so far yesterday as to suggest pessimism that workers will return in the next year. The irony is that they didn't express this kind of pessimism during the summer when they were insisting things were far better than they were. An equity crash here would put the Fed in.... /4

...position to expand massively under a Democrat controlled Congress and White House. UBI would likely become a reality as the market crashes on Biden tax hike fears, virus lockdowns, stimulus fights that could carry into next years as defeated Republicans finally find a... /5

...fiscal restraint spine after years of kissing the Fed's ring. Equities could easily retest March lows in this scenario. But I think the Fed senses their opportunity to direct link w/ consumers via a UBI program that will no doubt eventually come w/ a Chinese-like social.. /6

....credit system that will ensure that you take your vaccine and praise your benevolent leaders too. Really chilling stuff coming in the next few yrs but the Fed is looking for a seat at the table while still trying to gaslight stimulus into assets which controls the... /7

..velocity of money & keeps inflation under control. But it's a tough sell to ask consumers to buy Tesla stock when they need food on the table. & so I think inflation becomes a major problem late 2021 & people start to wake up to the massive inequalities the Fed is producing. /8