Powell receives an 'A' grade for handling politics as Fed chair, says Jefferies' Richard Fisher

Summary

Richard Fisher, former Dallas Fed president and Jefferies senior advisor, discusses Fed Chair Jerome Powell's performance, giving him an A- grade for handling political pressure and the 'transitory' inflation mistake. Fisher explains that Powell is staying on to provide cover for incoming Chair Kevin Warsh, shielding him from political pressure to cut rates prematurely. The conversation focuses on Fed independence, historical precedents, and the likely near-term path of rates.

• Fisher grades Powell A- for handling politics and the 'transitory' inflation error.
• Powell's decision to stay is seen as providing cover for Kevin Warsh from political rate-cut pressure.
• Historical parallels with Fed chairs McChesney Martin and Arthur Burns are discussed.
• Fisher doubts the Fed will move rates in the next few meetings.
• Some FOMC members favor rate hikes, but political pressure favors cuts.
• No specific tradeable assets or securities are recommended in the discussion.