Expert warns 'something is REALLY OFF' with the Fed

Economic Outlook - The U.S. economy is expected to grow at 3.8% or better, driven by private sector initiatives and the supply-side agenda of the Trump administration, which includes lower taxes and less regulation [5][6] - The Federal Reserve is perceived as being "rudderless" and may be on a rate-cutting path, with expectations for a quarter-point cut at the upcoming meeting on October 29 [3][11] Market Reactions - Gold prices are rallying towards $4,000 an ounce, and Bitcoin has surged to a new all-time high of $125,000, as investors seek safety in commodities amid expectations of Fed rate cuts [2] - Futures traders are pricing in a 96% chance of a quarter-point cut at the October meeting, indicating strong market sentiment towards easing monetary policy [11] Federal Reserve Insights - Fed Governor Steven Myron advocates for a larger rate cut of 50 basis points, citing factors such as stricter immigration policies and cooling rent trends that could help reduce housing inflation [7][11] - The Fed's current policy is seen as distorting the yield curve, with the rate it pays on cash reserve balances of commercial banks at 4.15%, comparable to a 10-year Treasury bond yield [8][9] Small Business and Credit Access - Access to capital for small and medium-sized businesses is crucial for economic growth, and the Fed's rate cuts should focus on expanding this access rather than merely responding to job numbers [12][14] - The real growth in the economy is expected to come from small businesses, which are essential for increasing production and services [13][14]