FED Policy Blunder to Accelerate Inflation? with Joseph Wang

Interview Recorded - 1st of March, 2023

On todays episode of the WTFinance podcast I had the pleasure of speaking with Joseph Wang - CIO at Monetary Macro, writer at the Fed Guy, author of the great book “Central Banking 101” and Former Senior Trader at the Federal Reserve Bank of New York. 

During our conversation we spoke about why QE has not cause hyperinflation, How QT is different to QE, Whether we will see a soft landing moving forward and impact high interest rates for longer will have on the markets. I hope you enjoy!

0:00 - Introduction
0:25 - Why has QE not caused hyperinflation?
4:25 - Did we know what QE would do before starting it?
6:05 - How can the FED help the economy?
8:45 - How is QT different to QE?
17:00 - How will treasury fund the deficit in higher interest rate environment?
21:55 - Why has the market remained strong with high interest rates?
25:00 - Will we see a soft landing this year?
31:30 - The FED has become political
34:20 - Todays policy similar to 1970’s?
36:50 - Changing FED tone
37:25 - What impact will high interest rates for longer have on markets?
39:40 - Geopolitical risk
42:40 - One message to takeaway from our conversation?

Joseph is the CIO at Monetary Macro and previously a senior trader on the open markets desk. The Desk sits at the center of the dollar system as its ultimate and infinite provider of dollars. It has access to virtually all regulatory and financial data, as well as open lines of communication with all major market participants. It is one of the few places in the world where one can definitively learn how the system works.

Earlier in his career, Joseph was a credit analyst and in another life he practiced law. He holds a B.A. in Economics from Northwestern University, a J.D. from Columbia Law School, and an MSc. in Financial Economics from Oxford University.

Joseph Wang - 

Website - https://fedguy.com/
Course - https://fedguy.com/courses/
Book - https://www.amazon.co.uk/Central-Banking-101-Joseph-Wang-ebook/dp/B08TV1MP8C
Twitter - https://twitter.com/FedGuy12

WTFinance - 

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iTunes -https://podcasts.apple.com/us/podcast/wtfinance/id1554934665?uo=4
LinkedIn - https://www.linkedin.com/in/anthony-fatseas-761066103/
Twitter - https://twitter.com/AnthonyFatseas

Thumbnail image from - https://www.foxbusiness.com/economy/fed-likely-deliver-another-huge-interest-rate-hike-high-inflation-persists