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EssentialThe Essential Conversation

Mission Creep Impossible: The Impact of the Federal Reserve's Exploding Balance Sheet

Featuring Jeff Cox and Ash Bennington

Jan 11, 2021 • 63 minutes

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Essential

The Essential Conversation

Mission Creep Impossible: The Impact of the Federal Reserve's Exploding Balance Sheet

Jeff Cox, finance editor at CNBC.com, joins Ash Bennington to demystify the often opaque activities of the Federal Reserve.

Featuring Jeff Cox and Ash Bennington

Jan 11, 2021 • 63 minutes

Jeff Cox, finance editor at CNBC.com, joins Real Vision senior editor Ash Bennington to demystify the often opaque activities of the Federal Reserve. Cox shares his in-depth knowledge on the Fed's plumbing to shine light on how factors such quantitative easing and interest rate cuts impact the real economy as well as financial markets. Cox describes how the Fed's reliance on the Phillips curve, a theory which may be outdated, led the central bank to chronically undershoot inflation over the past decade—as a result, the Fed is now willing to let inflation "run hot," purchasing assets and suppressing rates in an unprecedented manner. Lastly, Cox shares his views on Modern Monetary Theory (MMT) and the growing debt levels of the U.S. government. Filmed on January 7, 2020. Key learnings: The commitment of the Federal Reserve to supply liquidity to the economy is stronger than ever. The fact that the Fed’s facilities are more effective at inflating financial assets than they are at supporting the real economy is not something that its leadership is sufficiently concerned about to bring about any meaningful change in policy. Show More

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

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