Is the Fed destroying the economy or saving it? Is it restoring order to the markets are breaking them?
This is one of the biggest debates in finance right now (who am I kidding, at all times), and we wanted to talk to smart people on opposing sides to give our viewers a chance to make up their own minds.
First, Michael spoke with our friend Cullen Roche, who has a deeper understanding of the banking system than many of the people who simply see something they don’t understand and just spout off with the most aggressive opinions they can dream up. Cullen, for ten years, explained that excess reserves from quantitative easing do not lead to “hyper inflation” and that the most likely outcome of aggressive Fed intervention was more likely to be lower rates and inflation expectations, not higher. He was right, and people who had made the opposite bet don’t have any gains to show for it.
Cullen explains why the Federal Reserve has been misunderstood (deliberately?) for so long:
Next up, one of the savviest commentators on all things economic and central bank-related, Jim Bianco, who has been critical of some of the things monetary policy has wrought, and rightfully so. No program or plan is perfect, and Jim is evenhanded enough to explain the tradeoffs, flaws and potential downside to what Powell is attempting to do here.
You’re going to like this conversation a lot, no matter where you stand:
Subscribe to the channel if you haven’t already, we’re dropping gems like these all the time.
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