@KobeissiLetter To cure the conflict of interest, the board strips Jensen of direct HR, legal, security, and compensation oversight, appoints an Independent Chairman of the Board (Nvidia currently has no official board chair), and names a seasoned Chief Operating Officer or President
@bluechipdaily Achieving a sustained 2% usually requires a heavy economic slowdown or outright tightening cycle because structural costs (like healthcare, services, and housing) naturally want to push higher than 2%.
@bluechipdaily Less Painful Adjustments: Proponents argue that a slightly higher target reduces the impact of "downward nominal wage rigidity"—the psychological reality that employers rarely cut workers' nominal wages during downturns, which often forces them to resort to layoffs instead.
@bluechipdaily During a recession, the Fed needs to cut interest rates by 4 or 5 % points to stimulate the economy. If baseline inflation is 4%, nom interest rates will naturally be higher during normal times, Fed will have more ammunition to slash rates during a crisis without hitting 0%.
@bluechipdaily Why 2%? (The Logic and the Myth)
There is nothing economically sacred about the exact number 2; it started as a pragmatic rule of thumb pioneered by New Zealand in the late 1980s and was eventually adopted by central banks globally (the Fed made it an explicit target in 2012).
@GordonJohnson19@federalreserve@NickTimiraos Gordon has carved out a lucrative business model serving as the primary contrarian research house for short sellers, hedge funds, and risk desks looking for hard-hitting bearish theses and downside modeling to justify their short positions.
@GordonJohnson19@federalreserve@NickTimiraos Gordon is Ranked #11,626 out of ~12,500 analysts (bottom ~5%), with an overall negative average annualized return per rating (~ -4.0% to -4.6%)
@GordonJohnson19@federalreserve@NickTimiraos Gordon, if you are a lifetime perma bear 🐻 I wonder how you make any money 🤔 ….. I have a feeling you get paid by your hedge fund buddies.