Published on: January 6th, 2022 • Duration: 45 minutes
The Fed’s actions to keep credit flowing during the great financial crisis and its swift reaction to the March 2020 crash has led many to believe the central bank will do whatever it takes to juice the economy. “I think a lot of people are operating under the assumption that the Fed is this dovish institution that is dominated by liberals and academics and they’re going to keep rates at zero forever,” states Jared Dillian, editor of the Daily Dirtnap. The central bank has made the case for raising rates to combat inflation, and Dillian questions if investors will stop romanticizing the Fed when cheap money gets less cheap. Dillian and Peter Atwater, president of Financial Insights, discuss Fed psychology and what could lead to a loss of public confidence in the Federal Reserve. They also discuss the way market sentiment toward crypto, Tesla, and Covid in 2021 could impact trends this year. Recorded on December 27, 2021.