The Fed Is Softening Its Rhetoric

4min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

We are now officially on a year over year basis in negative territory when it comes to M2. The Fed funds rate did go up this week, but we have never seen this dramatic an increase in interest rates. We believe the bond market sees much lower real growth and or much lower inflation in the years ahead than the Fed does. And so we believe that also is a reason that the Fed is softening its rhetoric.

On today’s episode of FYI, we will be featuring last week’s episode of In The Know, a monthly video series on which ARK CEO and CIO Cathie Wood discusses fiscal policy, monetary policy, market signals, economic indicators, and innovation. On this specific episode, Cathie weighs in on M2 growth, interest rates, inflation, auto sales, and bitcoin. Additionally, she highlights ARK’s Big Ideas 2023.

“We’ve grown up in a linear world really the last 50 years, and if were right that we’re entering into an exponential growth world, then real GDP growth should kick up here.” – @CathieDWood

The Big Ideas highlighted in this year’s report include: