Choose Your Fighter, America

The Fed's new Financial Stability Report tells us a lot about what's happening now...

Dear Reader:

Last Friday, I was at the Federal Reserve’s Eccles Building… looking at the $2.5 billion in new construction. It’s no shock that the central bank that not only creates money… but also loses money (over $70 billion last year)… is extremely tone deaf.

This is happening at a time of significant risks. I wanted to highlight what we are eyeing from the Fed’s April Financial Stability Report.

Effectively… what are the risks?

I chose to dig into this report this morning for you because the Fed engaged in a $20 billion purchase of U.S. bonds yesterday. That purchase jolted my attention, because I need to understand exactly what the bigger risks are this year…

And just FYI, I’m going to oversimplify each risk for everyone…

No. 1: Global Trade Policy

Trade is the biggest worry right now, according to the participants….

President Trump has put extra taxes (called tariffs) on goods from other countries.

These taxes make things we buy from other countries more expensive. People worry th…