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A single best idea. The news flow this August is extraordinary. Of course, Ann Marie Horden in Anchorage. We'll have really special coverage tomorrow from Alaska on a summit, or as Tina Fordham said, maybe it's a non summit. We'll have to see on that. Lindy Fox was wonderful with CFR in Germany as well, but you know, it'll be interesting day at tomorrow. It has been an interesting week as well.
One of the high points with Jonathan Ferrell's really informative interview which let us see a snapshot, if you will, a movable feast almost of how the Secretary of Treasure he is thinking, this is mister Bessant, and he was really quite something about cutting interest rates. There has been a firestorm of response on Wall Street. Here's Jim Bianco Bianco Research.
He basically said, any model suggests that that interest rates should be cut by one and a half to one and three quarter percent, I'll come back and say to you that there's no model that says that if you have a three percent interest rate, that you should be cutting interest rates by that much. And John Author's authored does something about that yesterday, and he'll talk more about that.
That the idea that interest rates should go below the inflation rate when the inflation rate is this high is unprecedented. It's never been there when it's been above three percent. It should stay above the inflation rate by some premium. And that's why I think that the current funds rate at four and a quarter to four and a half is very close to neutral. And that's why I was saying earlier. If you want to cut interest rates and the fedies looks like they're going to, you're not going
to get the desired economic growth outcome. You're going to get an inflationary outcome.
Biancle there with one view. Let us remind ourselves that eighteen months ago, almost two years ago, he was courageous in calling for resilient inflation. He was very lonely in that call. Since we taped that, we got the PPI report and it was really something. I can't say enough about the heat of the research notes coming out after eight point thirty this morning, high point of the day. We're going to rip up the script here. Scott Ladner
joined us. He has an incredible career in derivative mathematics and in trading investment at WA Covia and now on the Horizon and he came in and I said, what's up and he said, you know his interns and AI. This is riveting for every parent battling the modern technology with their kids. On your children and the effect of artificial intelligence Scott Ladner Horizon.
It doesn't look like it actually. That's that's sort of the peril of AI right now that we're we're starting to trying to figure out is like like how much like how much below the surface are some of these kids getting and are they using it as a crush the sort of like hide how little they actually know?
You know?
This is like it's it's a real thing, and we're figuring it out in real time, and it's like what we've seen so far is it's a little bit scary, Like I don't I don't love what I see right now out of really really young ones like that twenty four to twenty five year old. You know, they're still kids, but they but they know enough still to use it to be productive. But they're really young ones. I'm worried right now they're using it too much, too much of a.
Crouch and Aside there for August and back to school. We're on podcasts, We're on Apple, we're on Spotify, on YouTube podcasts. It's single best idea