Let's bring in Niles investment management founder and portfolio manager Dan Niles. Dan, it's great to have you back. Thanks for joining us.>> My pleasure, Carl. >> Uh, so as a manager, how are you thinking about the Worsh decision. I mean, I think it's great for stock markets because if you believe that a big portion of multiples is driven by easy money, Kevin Walsh had an article in the Wall Street Journal how he said that AI was deflationary and the Fed needed to get away from this dogma that wage increa ...

Core Viewpoint - The discussion revolves around the Federal Reserve's approach to monetary policy, particularly the balance between addressing inflation and supporting the labor market, with a focus on potential leadership changes within the Fed. Group 1: Federal Reserve's Role and Policy - The Federal Reserve has become an activist institution over the past 25-30 years, and there is a desire for it to return to a more background role similar to the Alan Greenspan era [2][4] - Central bankers face a delicate balance between managing inflation and the jobs market, which can sometimes conflict with policy decisions [3] - Interest rates should ideally be above the rate of inflation to prevent long-term economic issues [4][6] Group 2: Inflation and Economic Conditions - The current economic environment has seen a sharp rise in inflation over the past five years, impacting small and medium-sized businesses significantly [5][13] - A softer labor market is viewed as a symptom of inflation rather than the primary issue, indicating that inflation should be prioritized in policy decisions [5][11] - The absolute level of inflation remains high, and addressing this is crucial for fostering a healthier economy and stronger job growth [13] Group 3: Leadership Changes and Candidates - Kevin Hasset is currently seen as a leading candidate to replace Jay Powell as Fed chairman, with discussions around the structure and independence of the Fed [9][10] - The qualifications of potential candidates, including Hasset, are acknowledged, but there is caution against slashing interest rates without considering the long-term implications [11][14] - The importance of maintaining an independent Fed is emphasized, as market reactions could reflect dissatisfaction with the Fed's direction [10][14]