OUT NOW - how @josephwang sees it: - Trump doesn't need Fed to lower mortgage rates substantially (he has GSE "Magic Wand") - Kevin Warsh will cite productivity boom to justify rate cuts as Fed Chair Apple🔊 Spotify🔊 1/4

This interview is brought to you by @PictetGroup and the Pictet AI Enhanced International Equity ETF $PQNT. International Exposure. Driven by AI. Learn more here: 2/4

Joseph also shares his views on foreigners USD hedging (who's right, BIS or Jay Powell?), labor market, whether Powell will stay on, the admin's current battle w/ the Fed, & what the Fed's balance sheet is going to look like in 2026 & beyond YouTube going live soon 3/4

GSE = Government Sponsored Enterprise. Refers to Fannie Mae & Freddie Mac, which used to have massive mortgage portfolios but pulled back. They increased their portfolios substantially last year under FHFA Director @pulte and after President Trump asked for 200 Billion more of purchases from Fannie & Freddie, mortgage yields fell a lot. @josephwang thinks they could go further by allowing the Federal Home Loan Banks (FHLBs), also under regulation/oversight of FHFA's Pulte, to lend to mortgage REITs (real estate investment trusts), which would allow them to buy more mortgages & mortgage-backed securities. Joseph argues that this could leave to a further reduction in mortgage rates and the spread between mortgages & Treasurys specifically. 4/4