Chris Whalen, chairman of Whalen Global Advisors and author of The Institutional Risk Analyst blog, joins The Julia La Roche Show for "The Wrap with Chris Whalen." Whalen breaks down what's ahead for the Federal Reserve and financial markets as we head into 2026. He discusses Kevin Hassett as the likely next Fed Chair, explaining why Fed independence is more myth than reality and how political pressures will influence rate decisions ahead of the midterm elections. Whalen analyzes the upcoming FOMC meeting, commercial real estate risks, and why he's not concerned about an imminent market crisis despite ongoing concerns about the Treasury market and credit conditions. He also tackles why the Fed's 2% inflation target may be outdated and explains the K-shaped economy that has consumers and investors feeling divided about the recovery.
Links:
The Institutional Risk Analyst: https://www.theinstitutionalriskanalyst.com/
https://www.theinstitutionalriskanalyst.com/post/theira785
Inflated book (2nd edition): https://www.barnesandnoble.com/w/inflated-r-christopher-whalen/1146303673
Twitter/X: https://twitter.com/rcwhalen
Website: https://www.rcwhalen.com/
Timestamps:
00:00 Intro and welcome Chris Whalen
01:07 Kevin Hassett as next Fed Chair pick?
03:10 Fed independence and political dynamics
05:00 Midterm elections and rate cut pressure
09:28 FOMC meeting preview, Fed worried about being "late to the party"
11:27 Importance of mortgage rates over fed funds
15:18 State of the economy, no crisis coming
16:56 Bitcoin and crypto market discussion
19:33 Commercial real estate reality check
23:29 Private credit myths and reality
25:00 Viewer question: Bank preferred stocks
26:50 Viewer question: Why the 2% inflation target?
28:14 Inflation vs deflation in asset markets
30:00 Biggest risks entering 2026
30:27 Surprise events and systemic risk
31:21 K-shaped economy and recovery paths
33:00 Wrap up and where to find Chris Whalen