Fed Chair Warsh says balance sheet should be as small as possible, and can expand when there's a crisis

Corporate earnings look to be broadening out. If there were a disappointment on what AI could do, much of the AI-related capex investments still have alternative uses. Trump: 'Don't have anything for you' on if he has talked to Trump. Would keep head down if Trump tried to influence policy. Labour Market:Labour market is in good shape; not sure if rate cuts are what caused that.Inflation: Monpol has caused inflation. Not happy with any measures of inflation. Task forces: Task forces have 6 months; will start getting briefings from task forces as early as September. Monetary aggregates are not perfect, but it's a good cross-check. If had used them in 2021 might have seen inflation sooner. Will take consideration of both Fed mandates when taking on task force recommendations. Economy:Focus is the real economy, and his message to markets is respond to real economy not to what Fed says.