Mum’s The Word: Kathryn Rooney Vera on Fed’s Second Meeting under Kevin Warsh (Live Replay)

Summary

Kathryn Rooney Vera discusses the Fed's hold and new Chair Warsh's quiet, laissez-faire style, arguing it shifts risk premium to the yield curve and threatens credibility. She remains bullish on gold and sees semiconductor upside if capex holds, but recommends profit-taking in energy. Jack Farley and Max Wiethe then react to Microsoft and Meta earnings: Microsoft beats with strong Azure growth, but Meta's quarter is labeled a disaster with soaring costs and weak guidance, highlighting diverging capex trends. The show ends with a debate on semiconductor and software prospects.

• Fed holds rates; Chair Warsh adopts low-communication, market-led approach.
• Long-end yields rise, curve steepens as inflation credibility erodes.
• Gold recommended as hedge against loss of Fed credibility.
• Energy stocks were YTD winners but now warrant profit-taking.
• Semiconductor boom possible if no rate hikes and capex stays strong.
• Microsoft beats on revenue and Azure cloud growth, but capex remains huge.
• Meta missed on EPS, saw costs surge 55%, and issued weak guidance – Jack calls it a disaster.
• Jack sees semiconductors as a buy; Max holds long Meta, Jack short Meta.