Podcast: The Gigantism of the Federal Reserve
Neil Azous, Founder and Chief Investment Officer of Rareview Capital joined Andrew Wilkinson of Interactive Brokers to discuss how the Fed might fight inflation in an economy in which fiscal and monetary issues have become joined at the hip.
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“If you fast forward, and you see how the world has changed now, when you respond in a war-like fashion, you start to mobilize the fiscal side of things in a lot more robust way. So, whether that’s the deficit, or the administration playing a greater role through executive powers, or the Treasury doing things such as in response to the Russia-Ukraine War regarding sanctions and the confiscation of assets, the overall point is in the past, we had three policymakers, Andrew, or two or three at the Fed that were really driving policy, globally. If you fast forward now, we probably got five to 10 people in the administration, an entire Congress of 400 people, you know, et cetera, and so we basically have 500 chefs in the kitchen. So, by default, we now just have an elevated volatility environment because of the introduction of fiscal activity that is now playing such an outsized role.”