Inflation Is The Fed's Greatest Fear | Liz Young

Jun 22, 2022

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SoFi’s Liz Young joins us on today’s episode of “On the Margin” for a post-FOMC rundown. When the Fed abandoned its anticipated 50 bp increase in favor of a 75 bp rate hike on the back of the Department of Labor announcing a higher-than-expected CPI of 8.6%, markets had a violent repricing.

Liz, SoFi’s head of investment strategy, walks listeners through the forces driving the Fed’s tightening cycle — she also covers the housing market, “animal spirits,” red flags signaling an earnings recession, and the Fed’s reaction function to the wealth effect.

Does Liz think we should anticipate a recession and continued Fed hawkishness? To find out, you’ll have to tune in.

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Referenced In The Show:

Fed Likely to Consider 0.75-Percentage-Point Rate Rise This Week: https://www.wsj.com/articles/bad-inflation-reports-raise-odds-of-surprise-0-75-percentage-point-rate-rise-this-week-11655147927?mod=Searchresults_pos1&page=1

Coinbase To Cut 18% of Workforce, CEO Wary of Potential Recession: https://blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/

Tech layoffs top 15K in a brutal May: https://techcrunch.com/2022/05/27/tech-layoffs-top-15k-employees-in-a-brutal-may/

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Timestamps:

(00:00)・Introduction

(01:11)・FOMC Meeting

(02:56)・Increased Volatility & Market Reaction To A 75bp Hike

(07:26)・The Housing Market

(12:01)・Fireblocks Ad

(13:19)・A Deep Recession On The Horizon

(21:35)・Inflation Is THE Fed's Greatest Fear

Listen to this episode on Apple or Spotify.

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Spotify: https://tinyurl.com/3vnnkrkw

Disclaimer: Nothing discussed on On The Margin should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.