Will the Fed's Palace of Versailles Cost Powell His Job?
We covered this story a few months ago - and now it's right back in the headlines.
Dear Fellow Traveler:
It was damn near impossible to get within 300 feet of the building.
My Uber driver got redirected twice, kicking us back onto Constitution Avenue in Washington, D.C. When I got out of the car, all I could hear was jackhammers.
The Federal Reserve’s Eccles Building was getting an overhaul, something I covered that day in a story called “Let Them Eat Beehives.”
The New York Post published an article in April stating that the upgraded headquarters, set to cost taxpayers $2.5 billion, would feature private gardens, VIP dining rooms, special elevators, and new water features.
Last week, however, Fed Chair Jerome Powell denied that such features would be a part of the overhaul.
“There’s no VIP dining room, there’s no new marble. There are no special elevators,” Powell told the Senate Finance Committee. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens.”
Now, Republican Senators are accusing Powell of lying. And President Trump has suggested that Powell must resign over this “renovation” controversy.
Personally, I think someone should focus on more the fact that the Fed lost tens of billions of dollars and hasn’t gotten anything right in the last four years about anything.
The next few months are going to be quite challenging for the central bank's independence. Whether the next Fed Chair is Scott Bessent or a loyalist to the President, the markets will begin to react to that expectation…
With ample liquidity in the system and the likelihood of future rate cuts and further easing, this market has considerable room to run. But, as always, I will be looking for the broader macro clues when a risk-off event occurs. Because what goes up will inevitably come down. We have experienced four four-sigma events in the last four years. The era of perpetual crisis and leverage is upon us.
We must manage it with a plan in mind. I continue to advocate for a sovereign-style approach to investing in the era of greater monetary inflation.
You can read that roadmap for free right here…
Let’s get to the week in review.
Monday, June 30
What You’re Really Getting
Recently, a subscriber of the Capital Wave Report asked what they were getting as a member for just $15 a month. So, I took the time to answer that…
This year, I’ve received countless emails from people thanking me for helping them avoid multiple crises in recent years.
With the most recent selloff, one reader told me that I’d helped him preserve a several-hundred-thousand-dollar portfolio. I know that many people don’t buy insurance until it’s too late. But we help YOU manage risk.
Tuesday, July 1
The 1% Pattern (How to Get Rich Without REALLY Trying)
Look at the chart below. This is the pattern of the COVID-19 stock market crash.
Now, compare it to the selloff linked to the GILT Crisis, the Silicon Valley Bank Crisis, the 2024 Nikkei Crash, and the Trade Collapse in March and April 2025.
They’re the same thing… Doesn’t anyone notice?!?!?!
Wednesday, July 2
The Funniest Scene in Movie History
What’s the funniest scene in movie history? Is it from Blazing Saddles? In Bruges? Step Brothers?
Or is it this one… from a dramatic retelling of the 2008 Great Financial Crisis?
Thursday, July 3
The Surprising Asset That Has Never Caused a Financial Crisis
We’ve studied every bubble in history. The Tulips… the Mississippi Bubble… the South Sea Collapse… and even the work of Sir Gregor MacGregor.
In every case, it’s usually a safe asset that fuels the crisis. Government bonds and land are very popular. And each crash usually centers around massive speculation and leverage. But there’s one asset that hasn’t fueled a manic crash.
And it will surprise you.
Friday, July 4
Things I Think I Think... 4th of July Edition
In the weekly listicle, I give you takes on grocery stores, George Michael, being a swim parent, and Maryland’s government.
Then… we talk about what really matters: The price of meat and why so many journalists fail to understand the impact of monetary policy on your diet.
Hot take coming!!!
Saturday, July 5
Thanks For Your 3 AM Email.
Well, that was a fun time… getting up on Saturday to a rant at me about the nation’s Net International Investment Position (NIIP).
I’d love to see this critic’s bar tab from Friday night…
Be sure to check out the Capital Wave Report - it goes live each morning before the bell - and costs less than fifty cents a day… You’ll get insight that you’re not going to find anywhere else.
Stay positive,
Garrett Baldwin