The Fed Opening the Flood Gates

Published on
April 14th, 2020
Duration
30 minutes


The Fed Opening the Flood Gates

The Interview ·
Featuring Dr. Thomas Hoenig and Pedro da Costa

Published on: April 14th, 2020 • Duration: 30 minutes

Dr. Thomas Hoenig, distinguished senior fellow at George Mason University's Mercatus Center, joins Pedro da Costa, columnist at MarketWatch and Forbes, to discuss Dr. Hoenig's experience as former chief executive of the Kansas City Fed and former vice chairman of the Federal Deposit Insurance Corporation (FDIC). Drawing upon his experience as a voting member of the Federal Open Market Committee, the Fed's principal organ for making large asset purchases, Dr. Hoenig discusses the current extreme measures that the Fed is taking in order to support asset prices during this unparalleled exogenous shock that the quarantine has inflicted on markets. They explore how large the Fed’s balance sheet could get and what a sustained zero-interest policy will mean for investors, workers, and employers. Filmed on April 8, 2020.