How the FED Prevented an Economic Crisis (for now?) with Nick Timiraos

On todays episode I was happy to host Nick Timiraos, Chief Economics Correspondent of The Wall Street Journal and author of the recently released book "Trillion Dollar Triage: How Jay Powell and the Fed Battled a President and a Pandemic---and Prevented Economic Disaster", a book that was recently recommended by Warren  Buffet at his Annual Shareholders Meeting. 

During the interview we talked about Powell's background, the extraordinary measures they did during the COVID pandemic, Flexible Average Inflation Target (FAIT) and what impact these decisions have made on the current state of inflation. I hope you enjoy!

Buy the book here - 
Amazon - https://www.amazon.co.uk/Trillion-Dollar-Triage-President-Pandemic-ebook/dp/B09B9JXNWZ/

Nick Timiraos has been the chief economics correspondent at The Wall Street Journal since 2017, where he is responsible for covering the Federal Reserve and other major developments in U.S. economic policy.

He joined the Journal in 2006 and previously covered the 2008 presidential election. He wrote about U.S. housing markets and the mortgage industry as a reporter based in New York. His coverage included the government’s response to the foreclosure crisis and the takeover of finance companies Fannie Mae and Freddie Mac. Other assignments have included the Treasury Department, fiscal policy, and the Puerto Rican debt crisis.

More of Nicks Work - 

Website - https://www.nicktimiraos.com/
Twitter - https://twitter.com/NickTimiraos
LinkedIn - https://www.linkedin.com/in/nick-timiraos-96364b2/

WTFinance - 
Website - https://www.wtfinance.online/
Spotify - https://open.spotify.com/show/67rpmjG92PNBW0doLyPvfn
https://podcasts.apple.com/us/podcast/wtfinance/id1554934665?uo=4
LinkedIn - https://www.linkedin.com/in/anthony-fatseas-761066103/
Twitter - https://twitter.com/AnthonyFatseas

Former Vice Chair Clarida about the FED’s job during the pandemic -

“We are in a jumbo jet at 30,000 feet in the worst storm in seventy-five years. Our instrument panel [The Treasury market] has gone dead, in both ways: We don’t believe what they’re saying, and when we push this button it doesn’t do what we think. On top of that we are running out of fuel or Treasury Money because we can’t keep doing these lending programs. Not only do we have to stabilize the plane, we’ve got to land it in a fog and gale-force winds. We’ve got to find an airport, land the plane on a dark runway, then make sure it does not skid off into the ocean”. 

Powell quote about Economy - 

Powell downplayed worries about a 1970’s style scenario of runaway price increases - globalisation and technology, said Powell, had weakened businesses’ ability to raise prices and eroded workers’ bargaining powers. “It’s just a different economy”.

Powell parting quote - 

“Even in terrible times, try to take counsel from your hopes as well as your fears,” Powell offered, “We should never sell ourselves short.”