Did Trump Just Reveal The Next Fed Chairman?!

0:00Hello, everyone. There's massive speculation on who's going to be the next Fed chairman. The SEC is cracking down on highly leveraged ETFs, and Google AI, they just revealed a mind-blowing video that's going to show you how valuable AI is going to be. We're live today from the desk of Anthony Pompliano.

0:25Before we get into today's episode, I need your help. My goal is to get to 1 million subscribers on YouTube, but right now we only have 40 ,157. Every single one of you watching this video right now, hit that subscribe button and let's get into today's show. All right, ladies and gentlemen, there is wild speculation going on. Who's going to be the next Federal Reserve Chairman? All of finance is paying attention to this. It's essentially become a finance soap opera. There's a period of time where the president, he was threatening to fire Jerome Powell. Tweets, interviews, every single day. Then we saw the administration pressuring the Fed into cutting rates more aggressively.

1:00Then out of nowhere, the housing director, Bill Pulte, he found reported mortgage fraud emanating from one of the Fed governors. That led to a huge legal dispute on whether the president could actually fire the governor or not. And most recently, Stephen Myron replaced Adriana Kugler on the Fed's board of governors. Kugler's going back to academic life, and that opened up a seat for Trump to put a nominee in there. This type of chaos, it's relatively unprecedented for America's central bank. But the entire Trump administration, it's been relatively unprecedented. My take is that maybe the chaos is actually part of the strategy.

1:33But this brings us to one big question. Who will be the next Fed chairman? Well, we won't know until the official announcement. President Trump seemed to give us a little hint, a little breadcrumb, a little cookie yesterday during a public appearance at the White House. Watch what he said here about Kevin Hassett and the Fed chairman's speculation. And I guess a potential Fed chair is here too. I don't know. We're allowed to say that potential. He's a respected person that I can tell you. Thank you, Kevin. Now, it's not just Trump who's feeding into all this. Polymarket odds, the prediction market, they have Kevin Hassett as the dominant favorite at 83 % to be the next Fed chairman as well.

2:11So who exactly is Kevin Hassett? And do we think this is a good choice? Well, Kevin Hassett, he's a well-known supply-side economist. His policy views are focused on unleashing economic growth. That sounds good. He wants to unleash economic growth through tax cuts, deregulation, and a commative monetary policy. A key component of his worldview is that we should prioritize growth over very strict inflation control. Many people, if you go and you ask them, they consider Hassett to be a pro-growth conservative. It's based on his argument that lower barriers to investment and production can actually raise wages, boost innovation, and enhance national security.

2:47Now, none of those seem like bad ideas. The question is, how do we get those outcomes? That's where the big debate and the controversy lies. Now, another aspect of Hassett's views, though, come from a book that he wrote in 2014. In that book, he discusses this idea of a 4 % solution. That idea is a roadmap for sustained 4 % GDP growth through tax certainty, spending restraint, and energy deregulation. Again, all of this sounds a lot like Ronald Reagan's supply-side ideas. Now, Hassett has been pushing this idea, this 4 % solution, most recently because he's arguing that booming consumption under Trump's policies actually signals lower income optimism.

3:25That's a big contrast to what he calls overstated Biden era stagflation. Now, so what exactly are Hassett's key policy positions? One, he wants to advocate for corporate and individual tax cuts because he wants to spur investment in wages. Second, he favors lower interest rates and faster cuts to stimulate borrowing, housing, and investment. Third, he wants to cut government spending and regulations to reduce deficits. He also wants to shift from an efficiency-driven globalism to secure supply chains via tariffs, friend-sharing, and domestic incentives. He wants to have job creation via tax incentives, and he supports intervention for chronic unemployment, but he opposes expansive welfare.

4:05He also supports deregulation for digital assets. And lastly, he views crypto as enhancing competitiveness. All of that sounds exactly like what the people have voted for, what they want their central bank to be doing. Now, another interesting data point on Kevin Hassett, this was pointed out by opening bells Phil Rosen, is that Hassett is a former Coinbase advisor, and he still reportedly holds a sizable stake in the cryptocurrency exchange, something like a million bucks or so. So you got a guy who likes crypto, the crypto people like that. And we've got Trump who's fanning the flames of speculation.

4:36We have Kevin Hassett leaning into the supply side economic policies, and we have market participants that are salivating over the idea of a new Fed chairman who would bring interest rates down and drive more growth in asset prices. Now, of course, it's all speculation. It ain't over until the fat lady sings. But what I say, I say bring on Mr. Hassett and let him bring back some common sense to the central bank. Oh boy, the SEC is cracking down on highly leveraged ETFs and it's about time in my opinion. There's a new report out from two Bloomberg reporters, Danica Tescova and Nicola White, they write that the U.S.

5:11Securities and Exchange Commission has issued a flurry of warning letters to some of the country's most prolific providers of high-octane exchange-traded funds. It effectively blocks the introduction of products that are designed to deliver three and even five times the daily returns of stocks, commodities, and cryptocurrencies, 3x or 5x leverage. They go on to write, in a set of nine almost identical letters posted Tuesday, the SEC told firms including Direction, ProShares, and Title that it would not move forward with reviewing proposed launches until key issues are addressed. At the heart of the regulator's concern is that the fund's risk exposures may exceed SEC limits on how much risk a fund can take on relative to its assets.

5:51Now, these letters direct the fund managers to either revise their investment strategies or they can formally withdraw their applications. Now, here's my take. I have talked about numerous times. Offering 5X leverage on any type of asset, that is a horrible idea for retail. Anytime that you give people a high-octane speculative asset, they're likely to go and use it. People are going to do the things that are riskiest if you allow them to do it. But somewhere, somebody has to set the rules. And so if 3X is approved, 5X is approved, why not 10X, 20X, 100X? Obviously, there's got to be a line somewhere.

6:26And my guess is that a little bit of leverage, that's going to be okay. but having a 5X levered ETF on a thing that is 80 vault, that is obviously going to be really bad. But even worse than that is the fact that many of the people who are using these assets, they don't realize that they're supposed to be trading tools. They're not long-term holding tools. And so whether that's in the way that they're marketed, the way that they're structured, or the way that there's guidance that comes from the regulators, something's got to change. We've actually even seen one of these funds blow up and the people who are holding the ETF, they lost 100 % of their money.

6:59That's the type of stuff that can happen when you introduce high degrees of leverage. I don't like these. I think that they're bad ideas. I understand why the ETF providers are providing them. They're saying, let people do with their money what they want. I usually like that idea, but this is a little too far in my opinion. Now, at the same time, Binance Research, they write that we are actually getting lots of crypto ETFs approved at the same time that we're having this crackdown on the leverage ETFs. Binance Research writes that one theme that has remained active in recent weeks is altcoin ETF approvals, Solana, XRP, Litecoin, Dogecoin, and others.

7:33Many of these have seen consistent net positive flows since launch as well. Binance writes that it remains early, but with additional altcoin ETFs filed and awaiting approval, this trend is set to reshape altcoin trading by virtue of their extension to Tradify markets. We saw with Ethereum, the second spot ETF approved over Bitcoin, markets may initially approach these products cautiously as access widens and early demand stabilizes before flows potentially strengthen over time. So here's the deal. If you're a regulator, if you're in the market, you got to figure out what are we going to allow and what are we not going to allow?

8:05Highly leveraged products, those seem to be in the crosshairs. Altcoin ETFs, those seem to be a go. Green light, red light. That is what regulators are trying to figure out right now. There's an assault on Wall Street in terms of what products can we give to these large, very enthusiastic retail audiences that have a lot of capital. It looks like the leveraged ETF, those are going to be a no-no. The altcoin ETFs, those are going to be okay. I don't know what the answers are, but what I do know is that if you give people toys to play with, they're going to play with the toys. And a 5X levered ETF, that to me is too far.

8:36The altcoins, I don't love them, but I understand that people want them. And so those are probably going to get the green light. All right. Everyone's seen these AI videos have been going viral online. Usually these videos, they show some feature and it's something that you would use once a year or twice a year. But now I just saw a video from Google AI. And I got to say, this thing has opened my eyes to what is going to be possible with artificial intelligence. It is going to infiltrate every single part of our life. Now, in this video, what you're going to see is that the Google AI app is actually helping somebody do an oil change.

9:06And it's using audio, it's using video, it's using image recognition. There's a conversation back and forth with the AI. It's almost like somebody's in their garage and they're talking to their dad for the first time on how to do an oil change. and their dad is walking them through. Here's the things you need. Here's where the different parts are. Here's how you actually do the oil change. Watch this video and tell me that you're not going to start using AI in every part of your life. Hi, I'm Gemini. Hey Gemini, this is my 2009 Beyond W335i. Can you help me do an oil change? Yeah, absolutely. What kind of oil and filter do you have on hand?

9:39And do you have the right tools like a wrench for the drain plug and an oil filter wrench? Yeah, I got the Cashflow 5W40 recommended and the correct oil filter, and I have the correct tool for the oil filter housing. Great! You've got everything we need. To get started, let's get the car lifted and access the oil drain plug. Okay, and where's the oil filter? The oil filter is located on the front of the engine, right below the intake manifold. It's always a good idea to remove the oil cap before you drain the oil. Okay, great. I'll do that. Okay, up we go. Okay, I got the car up in the air. Where's the oil drain plug?

10:14That's the plastic panel you'll need to remove. The drain plug is located underneath that panel. There's the panel off and looks like that's the drain plug. What size is that? It looks like a 17 millimeter drain plug. I'm going to pull it out now. Make sure you have the drain pan in place to catch the oil. Let me know when it's drained. You drain it out. Once the oil completely drains, you can wipe down the drain plug area and put the new washer on the drain plug. Put the new washer on the drain plug. I'm going to go ahead and put it back on the car now. What's the correct torque spec? For your N54 engine, the correct torque spec for the drain plug is 18 foot-pounds.

10:51Okay, that's 18. Okay, there's the flap back on now. Now I'm ready to drop the car. You can lower the car and then we can focus on the oil filter. So I got the oil filter removed now. Okay, I see the old filter in your hand. Before installing the new filter, you'll need to replace the large O-ring on the cap that comes with the new filter. There's also a smaller O-ring at the tip of the cap that should also be replaced. I see the two O-rings in the plastic bag. Go ahead and replace the ones on the filter cap with those. You can use a small flathead screwdriver or a pick to gently pry the O-ring off.

11:29Got it. You're gently prying the O-ring off with the pick. It looks like you've got the green O-ring in place. Okay, got the new O-rings and the new filter in. Perfect. Perfect. Now that the oil filter cap is ready, go ahead and screw it back into the housing on the engine. Okay, I'm just tightening down the oil filter housing. What was that torque spec again? It's actually 18 foot pounds. Go ahead and set your torque wrench to that setting and let me know when you're done. There we are. That's 18 pounds. Okay, I'm ready to top up the oil. So how much does an N54 take? It's 6.9 quarts, which is 6.5 liters.

12:02Your N54 doesn't have a dipstick. You'll need to start the engine and let it run for a few minutes to let the oil circulate. Then you can use the vehicle's electronic oil level sensor to check the level. Okay, Gemini, the oil looks full. It looks like you're all set with your oil change. Another job well done. Thanks so much, Gemini. You're very welcome. It was my pleasure to assist you with your oil change. Now again, after I see that video, all I can see is that there is superhuman intelligence that is using a supercomputer that's in our pocket that has sensors that can collect audio and video and have an interactive conversation.

12:37That is going to be everywhere. An oil change is an easy example. Kids are going to use this stuff for their homework. Parents are going to use it with their kids. You are going to see AI enter every single part of our life. And yeah, there's lots of speculation right now in public markets. Is the investment worth it? Are the companies going to get a return? At the end of the day, that is one conversation. But the conversation that nobody is saying is that AI is 100 % going to be adopted by the actual users, regardless of which company provides it. We saw this with ride sharing as an example. People always wondered, will Uber and Lyft actually survive as companies?

13:11But one thing became very clear. Once you started using a ride sharing app, you didn't care who the actual company was that provided it over time. All you knew is you might not have to own a car anymore, and you would actually be able to get a stranger to take you where you needed to be. Consumer behavior changed and we knew that ride sharing wasn't going away. The exact same thing is happening right now with AI. And I think that people are slowly realizing this stuff is for real. This stuff can make you more productive and this stuff can help you do things that you've never done before. This video really opened my eyes and I hope it did yours as well.

13:42That's it for today's show. Hope you guys enjoyed it. I'm having a blast putting these together for you. My ask of you is to please subscribe on YouTube. I say it every show. Some of you, you keep watching and you say, wow, I learned a lot, but you don't hit the button. Just go hit the button. 41 ,100 different subscribers right now, but with your help, we'll get to our goal of a million. Hit the subscribe button and I'll see you guys live tomorrow from the desk of Anthony Pompliano.