In this episode, Warren Mosler joins the show to discuss the counterintuitive impact of that Federal Funds rate, the impact of government spending, and the economics of trade and tariffs. We also delve into the shifting duration of US debt, whether deficits matter, and much more. Enjoy!
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Timestamps:
(00:00) Introduction
(01:41) Warren’s Macro Overview
(06:19) Understanding The Neutral Rate
(14:16) Fed Funds & Inflation
(21:14) Rate Cuts Are Cooling Inflation
(22:54) Ads
(25:02) Rate Hikes Are Stimulative
(27:32) Deficit Spending Is Money Printing
(28:27) Taxes & Government Spending
(31:56) The Effect Of Monetary Acronyms
(34:29) The K-Shaped Economy
(37:29) Zero Rate & Asset Bubbles
(39:05) Politics & The Oil Market
(41:29) Trump, Trade, & Tariffs
(49:41) Taxes, Unemployment, & Financing More Stuff
(56:38) Does The Deficit Matter?
(58:42) Impact Of Shifting Debt Duration
(01:01:14) The Bid For Duration
(01:04:57) Warren’s Trading
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.