The Fed's Next Act and the Week in Review...
Well, that was a fast one...
Dear Fellow Traveler:
I was a bit surprised…
And then… like that… I wasn’t…
Scott Bessent, the current Treasury Secretary and former hedge-fund manager, is reportedly under consideration for Fed Chair when Powell's term ends in May 2026.
That’d be a "reverse transition"—Treasury to Fed—creating unprecedented fiscal-monetary alignment. Remember, Janet Yellen went from the Fed (under Obama) to the Treasury under Biden.
This would be wild.
MarketWatch is already floating a "shadow chair" scenario where Bessent could influence policy before Powell officially exits. I discussed this scenario this week.
While everyone's parsing Powell's words on Wednesday for rate clues, the smart money is positioning for 2026.
Trump wants his Fed Chair. He's been clear about that.
And Bessent checks all the boxes:
Lower rates? Check.
Weaker dollar? Check.
Someone who plays ball? Triple check.
This feels like evolution, not revolution.
If Bessent's ascension is real, expect:
Accelerating dollar weakness
Shifting yield curves
Gold catching another bid
Risk assets getting fuel
Now, let’s get to the week in review.
Monday, June 9
The Shadow Fed Chair
The week started with a deep dive into America's backup central bank - the Treasury Department.
While Jerome Powell plays tough with interest rates, the Treasury floods the system with T-bills, creating liquidity through the back door.
It's the monetary policy's version of a speakeasy that's technically not supposed to exist, but everyone knows where to find it. Trump's already shopping for Powell's replacement, as if he's picking throw pillows.
Tuesday, June 10
Meet Glen Mosqueda: The Next Fed Chairman?
A Poteet, Texas man faces 20 years for doing what Jerome Powell calls "Tuesday" - printing money.
Glen Mosqueda got caught with a car full of counterfeit bills and a warm printer, while the Fed's balance sheet ballooned from $900 billion to $6.85 trillion.
The only difference between Glen and the Federal Reserve? Scale, sophistication, and a government seal of approval. Maybe Trump should interview him...
Wednesday, June 11
Sovereign Wealth Funds Are Buying Your Toll Road
While we're distracted by the money printer, Middle Eastern sovereign funds quietly buy up America's infrastructure with a $1.4 trillion checkbook.
That pipeline in Texas? It's printing money for Abu Dhabi.
Your data center in Virginia? Qatar owns it now.
These boring assets come with built-in inflation adjustments - it's like owning a business that automatically gives itself a raise every year.
Thursday, June 12
Dispatches from Fort Knox
A timely pilgrimage to Kentucky reveals why central banks are loading up on gold like doomsday preppers with tax refunds.
China just logged its 18th consecutive monthly increase, adding another 10 tonnes to its hoard. When the people who create money start trading it for rocks, we should too.
After all, gold is Element 79 on the periodic table - chemically impossible to disappoint you.
Friday, June 13
The $3 Trillion Shadow Banking Time Bomb
Remember how shadow banking blew up the world in 2008? Well, they're back and bigger than ever. Private credit has ballooned into a $3 trillion monster with no regulation, no transparency, and insurers have pumped $800 billion offshore into this black box.
Moody's is warning, but everyone's acting like it's fine. I've seen this movie before - it ends with someone saying "nobody could have seen this coming" right before the bailout.
Saturday, June 14
Central Banks Just Showed Their Hand
Gold overtook the Euro as the second most important reserve asset, now comprising 20% of global central bank reserves.
Pay attention when the magicians who print money start buying real rabbits because they know the hat trick is failing.
This isn't subtle - it's the people who issue fiat currencies screaming "WE DON'T TRUST OUR OWN PRODUCT" while hoping you don't notice. Central banks are stacking physical gold like doomsday preppers at a Costco bullion sale.
I’ll be back tomorrow live at 8:45 ET for full updates on what’s happening with the Federal Reserve. The central bank will meet on Tuesday and Wednesday…
Let’s see if people in the media finally realize that the Treasury Department is driving the bus… and not the Fed anymore.
Stay positive,
Garrett Baldwin
That’s what I told you months ago. Or Howard Lutnick, the president will appoint someone who fully supports his vision.