The "Vibe" of Economics: Macroeconomics is often treated as high-minded math, but it is rooted in public sentiment. If the people don't feel good, the economy isn't good.The K-Shaped Recovery: The economy has split into two distinct tracks.The Wealth Effect Bubble: The current "smooth landing" is being propped up by the "Wealth Effect"—inflated asset prices making the rich feel richer, prompting them to spend more.The Fed’s Hidden Third Mandate: Beyond stable prices and maximum employment, the Federal Reserve has a third, critical mandate: ensuring the solvency of the US government and financing its debt.Why the Fed is Trapped: If the Fed allows the market bubble to pop, consumption from the top 10% will vanish, causing a recession that disproportionately hurts the bottom 90%. Therefore, the Fed is incentivized to cut rates or maintain policies that support asset prices.Memorable Quote: "If the Federal Reserve doesn't give the markets what they want, then the reverse wealth effect will reduce consumption... This isn't to say that it isn't a problem that the jobs that put food on the table for millions of Americans should exist at the whim of shareholder return quarter on quarter."