You are a free subscriber to Me and the Money Printer. To upgrade to paid and receive the daily Capital Wave Report - which features our Red-Green market signals, subscribe here. Meet the Shadow Fed ChairThe Treasury is America's backup central bank, and we'll be looking at more BRRR during the next Fed appointment.
Dear Fellow Traveler, Have you heard the story about the "Shadow Fed Chair?" It’s exactly what it sounds like… Someone playing central banker without the fancy title or those boring congressional hearings. Think of it as monetary policy's version of a speakeasy. It’s technically not supposed to exist, but everyone knows where to find it. Here's how this works… What Is This?The Fed is supposed to control the money supply like a lifeguard controls who gets in the pool. But what happens when the President wants a pool party and the Federal Reserve says, "No swimming, Donny"? You find another hose. Enter the Treasury Department, stage left, carrying buckets labeled "T-bills." When neither Biden nor Trump could get Jerome Powell to cut rates fast enough, the Treasury started flooding the system with short-term debt. Can’t use the public pool? Just build a water park next door. While the Fed is playing tough with interest rates, the Treasury is in the back alley, dealing liquid cash to anyone with a pulse. Banks, hedge funds, and your mother if she has a brokerage account.  Everyone gets a taste of that sweet, sweet liquidity. Here’s how it works…
This has been happening in broad daylight for years. It really ramped up when Janet Yellen ran the Treasury Department. Time to Make It OfficialPresident Trump doesn’t like Jerome Powell. The feeling for Powell is mutual. It’s clear that Powell won’t be back when his term ends in 2026. He’ll probably get a job with PIMCO, a guest lecture series at Georgetown, and a book deal where his arms are crossed on the cover and he talks about how brave he was… You know… like every other Fed Chair before him… Trump’s already shopping for a new Fed Chair like an interior designer shops for throw pillows - looking for something that matches his vision and won't clash with the furniture. The name Kevin Warsh keeps popping up as the front-runner… Trump wants rates cut by a full percentage point. In a world where we're already printing $5.2 billion daily just to keep the lights on, we’re talking about really ripping over the floodgates. This is like curing a hangover with more tequila. What You Need to Do Remember, the Treasury will keep playing with policy whether the Fed likes it or not. And when you have two agencies racing to see who can inject more liquidity, prices don't stay calm for long. As a result, asset prices will do fine. Stocks, real estate, bitcoin - when there's this much money sloshing around, it has to go somewhere. But all the while, look for ongoing debasement of the dollar. Stop fighting this. Seriously. You're not going to win a battle against two money printers running simultaneously. Instead:
BRRR. Stay positive, Garrett Baldwin The Receipts: Bloomberg, Goldman Sachs, James Bianco, Treasury Data About Me and the Money Printer Me and the Money Printer is a daily publication covering the financial markets through three critical equations. We track liquidity (money in the financial system), momentum (where money is moving in the system), and insider buying (where Smart Money at companies is moving their money). Combining these elements with a deep understanding of central banking and how the global system works has allowed us to navigate financial cycles and boost our probability of success as investors and traders. This insight is based on roughly 17 years of intensive academic work at four universities, extensive collaboration with market experts, and the joy of trial and error in research. You can take a free look at our worldview and thesis right here. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.
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