PS -- much credit to Reuters for taking this exceptional look at how Alt5 fits into the recent slate of Trump family crypto ventures. Great minds etc.
Bessent on Warsh: "The president understands that the more credible you are, the more work the financial markets will do for you."
Sounds like a tacit understanding that Warsh isn't expected to to bring down the fed funds rate. It's how Warsh says long rates come down: through new Fed credbility.
Trump Media, owner of Truth Social, says in a press release it will not spin off that brand, as it had previously considered. Trump Media is down 61% in the past year, despite its plan to merge with fusion company TAE.
I dug into the Alt5 saga for CNBC. In August, the elder Trump brothers celebrated a deal that saw the family earn a half-billion dollars. On the other side of that deal was a little-known stock, then called Alt5 Sigma. It has turned out very poorly for Alt5's investors, who have taken 93% losses.
So, we now have a Fed chair who blames the Fed for inflating stock prices, argued repeatedly for letting more firms fail and criticized the SVB rescue.
If I were in the market I would need to see proof before I believed anything was going to change, but I don’t think it’s so obvious any more.
Journalist covering politics, policy, and economics for CNBC. [email protected]. personal site: mattpeterson.me
