🔥 Something shifted — even if most people are acting like nothing happened.
If the Federal Reserve hands control to Christopher Waller, this isn’t a minor policy change. It’s a full-scale stress test for markets.
Waller’s plan sounds simple on paper:
AI boosts productivity → inflation cools → the Fed aggressively shrinks its balance sheet → trillions in liquidity quietly disappear → rate cuts are used as a “soft landing.”
But pulling liquidity at that scale pushes real interest rates higher. U.S. Treasuries feel it first. Bonds weaken. Yields rise. Risk spreads widen. Confidence starts to crack.
At the same time, rate cuts structurally weaken the dollar. When bonds sell off and the currency softens, stocks don’t escape. That’s how stocks, bonds, and the dollar fall together — a setup most portfolios aren’t built to survive.
Powell moved carefully because the system is fragile. One wrong move triggers feedback loops: liquidity dries up, volatility spikes, and trust disappears.
Waller’s roadmap depends on fast, smooth AI productivity gains. If that assumption fails, the damage won’t just be price declines — it’ll be loss of credibility.
$DOGE
$QKC
Ask yourself:
Which assets break first when liquidity tightens?
Where is leverage hiding?
And what do you own that only works in a perfect market?