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00:00Let's bring it to the markets real quick, so we can talk about our animal stories forever.
00:04But yesterday, of course, we got the Fed decision. It was 50 basis points,
00:09which a lot of people were predicting. The reaction was a little bit
00:13rollercoaster up and down. And then today, it's just straight up. What do you make of this move?
00:18Why do you think there was this kind of delayed reaction overnight?
00:24I think every word is parsed through on a Fed statement. And I always used to refer to this
00:28as like the cha-cha-cha. And I think there's an extra cha this morning, because
00:35it definitely, to me, they were clear. And the more important thing that they were clear on,
00:40the two things that to me, the most bullish were, when I hear 2% GDP growth, and I realize the Fed
00:46isn't necessarily right all the time in terms of their economic prognostications, but 2% into 27,
00:53with a backdrop where they're there to support labor. And ultimately, again, their mandate is,
00:58if anything, totally balanced at this point. That's providing both the macro and also the
01:05policy response. So in a world where we've never seen earnings growth going into rate cuts like
01:14this, in other words, this is an unorthodox rate cut on some level, even though we all know that
01:21seemingly we were very restrictive on policy. Markets reactions to these types of things,
01:25again, I don't know. I mean, look, we came into the announcement at all time highs.
01:31Why wouldn't we take a breath and digest it? But the things that are going to be, I think,
01:37also major determinants of at least medium term, the short term, we can all try to handicap here,
01:44but I think is what's going on with the currencies and where we are really on the
01:50yield curve. I still think that rates have come in too low, even on the long end. I think that
01:58bonds, in terms of rates, were indicating recession, commodities have indicated recession,
02:04equities and credit have said game on. And something needs to give. So I do think you
02:11need to watch those dynamics. But it was a day when, again, so much had been built into this day,
02:1825 or 50 really didn't matter. In other words, if they had said 25,
02:22would we have had a better outcome yesterday? I don't think so.