--- title: 'The Fed FOMC Meeting was a Disaster' source: 'https://youtube.com/watch?v=fVF76VgCe3U' video_id: 'fVF76VgCe3U' date: 2026-10-29 duration_sec: 176 channel: 'Meet Kevin' --- # The Fed FOMC Meeting was a Disaster > Source: [The Fed FOMC Meeting was a Disaster](https://youtube.com/watch?v=fVF76VgCe3U) ## Summary The video analyzes the Federal Reserve's FOMC meeting, focusing on Chairman Kevin Worsh's unexpected dovish stance. It highlights his flip-flop on financial conditions, his interest in labor market task forces, and his hypothetical comments about oil prices, suggesting political pressure and potential market implications. ### Key Points - **Unexpected Dovish Hold** [00:01] — The FOMC meeting resulted in a dovish hold, contrary to expectations. Chairman Kevin Worsh's tone was surprisingly dovish, possibly influenced by Trump's suggestion of a deal with Iran. - **Flip-Flop on Financial Conditions** [00:17] — At the last meeting, Worsh said financial conditions were 'really tight.' Today, he said he is 'unwilling and unable to call financial conditions tight,' a 100% reversal in six weeks, citing credit spreads and CDS that have come down. - **Labor Market Task Force Interest** [00:58] — Worsh wants to sit in on a 3-4 hour productivity and jobs task force on November 16th, signaling concern about whether the labor market will see a productivity miracle or weaken. - **Political Pressure on Worsh** [01:26] — The speaker suggests Worsh is avoiding a hike to prevent being fired by Trump, saying he will say whatever needed to avoid hiking. - **Return to Inflation Decimal Point** [01:38] — Worsh brought back his controversial comment about looking 'to the left of the decimal point' on inflation, which previously damaged his credibility and took three meetings to recover from. - **Hypothetical Oil Price Drop** [02:07] — Worsh hypothetically suggested that if oil prices suddenly come down, the Fed might have to change its approach, hinting at a possible deal with Iran or other geopolitical moves. - **Split Vote** [02:47] — The hold was not unanimous: 10 voted for the hold, while Hammock and Cook voted for a hike. ### Conclusion The FOMC meeting revealed a dovish pivot by Chairman Worsh, likely under political pressure, with a split vote and hints at potential oil price drops. This suggests possible upcoming policy shifts and market volatility. ## Transcript chairman of the Federal Reserve. We got a dovish hole today. This was not expected at all. Everybody was expecting Kevin Worsh to talk to us. Unless, of Trump suggesting that everything's going to be okay. Don't worry, we're about to make a deal with Iran. Now, why do I say that Kevin Worsh was doubbish today? Let's talk about the facts. At the last meeting, Kevin Walsh told us financial conditions are really tight. And you would be hardpressed to suggest that financial conditions are not considered tight right now. Today, he says, "We are quote unwilling and unable to call financial conditions tight." In other financial conditions tight." In other words, a 100% flip-flop in 6 weeks. Quite strange. He's citing credit spreads and credit default swaps, but they've started coming down again, which in other words suggests, no, maybe financial conditions aren't exactly that tight. So, all of a sudden, real dovish. But it's not just that. All of a sudden, he wants to sit on on a sit in on a 3 to he wants to sit on on a sit in on a 3 to four hour labor force task force, not any of the other task forces. He on November 16th 16th wants to sit in on a productivity and jobs task force to see if we really are going to see a productivity miracle in the labor market or if the labor market's about to weaken It's basically telling us, hey, hey guys, uh yeah, I'm not going to hike and I'm going to say whatever I need to not to hike cuz Donald's going to fire me otherwise. This was really strange. Then otherwise. This was really strange. Then he literally brought back what he got chastised for last time. LA, well, not last time in in June. In June, his first "Oh, we're going to pay attention to the inflation number to the left of the 2.9% inflation and he'd be happy with it. People freaked out about that. And it took him three meetings to get a reputation of having credibility again. we're going to look to the left of the decimal. I'm like, "What? Why are you going back to this? You're going full circle back to what you shouldn't go Besson saying, "Ah, the oil inflation's just transitory." And then the craziest thing of all, Worsh literally says, "Hey, uh, you know, hypothetically, to the extent that oil prices might come down suddenly, we might have to change what we do and a lot of things are going to get affected in what we do." When does a Fed hypothetically suggest oil prices are suddenly going to fall? Unless of course Donald Trump either through force or convincing or otherwise just convince the Federal Reserve to not what to I don't know. Maybe a deal is coming after all. But this was a weird one. And it was not a unanimous hold. 10 people went for the hold. Two went for a hike. Hammock and uh cook. We'll see. Is the bed cooked?