Fed Boosts Benchmark By 50 Basis Points

Fed Boosts Benchmark By 50 Basis Points

The Federal Open Market Committee agreed to raise the federal funds target rate by 50 basis points and to begin shrinking the Federal Reserve’s balance sheet in June by $47.5 billion, with the runoff pace to reach a maximum of $95 billion per month after three months. The FOMC noted in its statement that “ongoing” increases to the fed funds target rate will be appropriate. The central bank’s quest now is to find some “neutral” rate of interest without tipping the economy into recession. “The last time the Fed made a 50-basis-point move was March 2000,” notes Darius Dale. “The dot-com bubble burst shortly thereafter, with the S&P 500 losing 50% and the Nasdaq Composite shedding 80% from 2000 peak to 2002 trough.” Equity indexes were mixed shortly after the FOMC announcement and shortly ahead of Fed Chair Jerome Powell’s press conference. Dale, founder and CEO of 42 Macro, joins Real Vision’s Maggie Lake for today’s Real Vision Daily Briefing to talk about the Fed, the economy, and how the “smart money” is reacting to quarterly earnings reports. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3y9meHD Learn more about your ad choices. Visit podcastchoices.com/adchoices

Episoder(2086)

The Knock-On Effect #11 - Almond milk and stamp storage

The Knock-On Effect #11 - Almond milk and stamp storage

Why will rising popularity of almond milk make it more expensive to store postage stamps? Justine and Alex discuss — also touching on bovine productivity, disused limestone mines, and the “Illuminati ...

3 Aug 201837min

The Knock-On Effect #10 - Yield Surge to Trash Cheap Vodka?

The Knock-On Effect #10 - Yield Surge to Trash Cheap Vodka?

Will rising yields on Treasury notes sink the cheapest vodkas? Alex and Justine discuss – also touching on the causes of recession, Scottish drinkers, and the impact of Fed policy. Plus, a controversi...

27 Jul 201846min

The Knock-On Effect #9 - Trade Fears to Clarify Diamonds?

The Knock-On Effect #9 - Trade Fears to Clarify Diamonds?

Why will rising concerns about China’s trade-related retaliation lead diamonds to become clearer? Justine and Alex discuss – also touching on Jules Verne novels, iPhone batteries and a new version of ...

20 Jul 201832min

The Knock-On Effect #8 - Stock Rally to Spur Foot Picking?

The Knock-On Effect #8 - Stock Rally to Spur Foot Picking?

Why will higher stock prices lead more American to pick feet? Alex and Justine discuss, also touching on income inequality, one very fancy Manhattan store, and the marital habits of reptile owners. Pl...

13 Jul 201838min

Real Vision Rewind #1 – Godfather of Central Banking

Real Vision Rewind #1 – Godfather of Central Banking

How did the modern age of central banking begin? In this story previously heard in a 2017 episode of “Adventures in Finance,” Grant Williams, Aaron Chan and Ben Hunt look at the fascinating history o...

6 Jul 201843min

The Knock-On Effect #7 - Rising dollar to unleash unusual ice cream flavors?

The Knock-On Effect #7 - Rising dollar to unleash unusual ice cream flavors?

Why will a rising dollar lead to a proliferation of ice cream flavors that go far beyond vanilla? Justine and Alex discuss, touching on thieves in Madagascar, beaver glands, whisky maturation and the ...

29 Jun 201837min

The Knock-On Effect #6 - Fed Hikes to Quash Lottery Ticket Sales?

The Knock-On Effect #6 - Fed Hikes to Quash Lottery Ticket Sales?

Why will a higher fed funds rates lead to a decline in the number of Americans who play the lottery? Alex and Justine discuss, along the way touching on the future of transportation, moving to L.A., t...

22 Jun 201829min

The Knock-On Effect #5 - Demographics and Doorways

The Knock-On Effect #5 - Demographics and Doorways

Why will changing Chinese demographics lead to an increase of plastic strips in doorways? Justine and Alex discuss - and in so doing, also touch on Ikea trips, online dating, modern food production, a...

15 Jun 201848min

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