Big Technology Podcast What's Next For Our Crazy Economy — With Square Co-Founder Jim McKelvey
Mar 2, 2022
Jim McKelvey, co-founder of Square and chair of the St. Louis Fed, dives into the current economic climate shaped by high inflation and global uncertainty. He debates the Fed's next moves amidst geopolitical strains, like the Ukraine conflict. McKelvey shares his risk-tolerance philosophy, emphasizing how failure can fuel innovation. He reveals why his new startup won’t utilize blockchain and teases an upcoming SXSW panel about empowering individuals in the evolving data economy with solutions like the Invisibly platform.
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Economic Slowdown and Uncertainty
- The economy has recently slowed down, with the S&P 500 dropping and global uncertainty rising due to the conflict in Ukraine.
- This presents a challenge for the Federal Reserve, as raising interest rates now could risk a further economic downturn.
The Fed's Role and Approach
- The Federal Reserve operates independently and strives for economic stability by balancing employment and inflation.
- Jim McKelvey emphasizes the Fed's apolitical nature and data-driven decision-making process.
Inflation and Interest Rates
- There are two schools of thought regarding current inflation: one blames low interest rates, the other supply chain issues.
- Raising interest rates to combat inflation carries risks, including stagflation.
