SoFi’s Liz Young joins us on today’s episode of "On the Margin" for a post-FOMC rundown. When the Fed abandoned its anticipated 50 bp increase in favor of a 75 bp rate hike on the back of the Department of Labor announcing a higher-than-expected CPI of 8.6%, markets had a violent repricing.
Liz, SoFi’s head of investment strategy, walks listeners through the forces driving the Fed’s tightening cycle — she also covers the housing market, "animal spirits," red flags signaling an earnings recession, and the Fed’s reaction function to the wealth effect.
Does Liz think we should anticipate a recession and continued Fed hawkishness? To find out, you’ll have to tune in.
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Referenced In The Show:
Fed Likely to Consider 0.75-Percentage-Point Rate Rise This Week: https://www.wsj.com/articles/bad-inflation-reports-raise-odds-of-surprise-0-75-percentage-point-rate-rise-this-week-11655147927?mod=Searchresults_pos1&page=1
Coinbase To Cut 18% of Workforce, CEO Wary of Potential Recession: https://blockworks.co/coinbase-cut-workforce-ceo-wary-of-potential-recession/
Tech layoffs top 15K in a brutal May: https://techcrunch.com/2022/05/27/tech-layoffs-top-15k-employees-in-a-brutal-may/
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Timestamps:
(00:00)・Introduction
(01:11)・FOMC Meeting
(02:56)・Increased Volatility & Market Reaction To A 75bp Hike
(07:26)・The Housing Market
(12:01)・Fireblocks Ad
(13:19)・A Deep Recession On The Horizon
(21:35)・Inflation Is THE Fed's Greatest Fear
Listen to this episode on Apple or Spotify.
Apple: https://tinyurl.com/mry8y4k3
Spotify: https://tinyurl.com/3vnnkrkw
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Disclaimer: Nothing discussed on On The Margin 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.