The Fed’s Interest Rate Message Is Clear: Get to 5% and Keep It There

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 11 January 2023

⏱️ 16 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

On today’s episode, NLW looks at the latest communiques from Federal Reserve officials, including comments by Atlanta Fed President Raphael Bostic and San Francisco Fed President Mary Daly, as well as a speech on Tuesday by Federal Reserve Chair Jerome Powell. The message is “higher for longer” even if the markets don’t agree. Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW - Join the most important conversation in crypto and Web3 at Consensus 2023, happening April 26–28 in Austin, Texas. Come and immerse yourself in all that Web3, crypto, blockchain and the metaverse have to offer. Use code BREAKDOWN to get 15% off your pass. Visit https://consensus.coindesk.com/register/?utm_campaign=thebreakdown&utm_content=c23&utm_medium=marketing&utm_source=podcast&utm_term=organic&utm_id=c23 - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsor today is “Foothill Blvd” by Sam Barsh. Image credit: Morrison1977/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	Of the more than 6 trillion in U.S. government spending last year, almost half a trillion
0:04.2	was spent on interest payments to debt holders, an increase of $100 billion compared to 2021.
0:09.8	Interest payments to private investors have now become such a significant part of government
0:13.1	spending that increased interest rates could have a stimulative effect via increased government
0:17.4	deficit spending.
0:18.9	Just another example of how weird and uncharted some of these
0:22.4	waters are right now. Welcome back to The Breakdown with me, NLW. It's a daily podcast on macro,
0:31.8	Bitcoin, and the big picture power shifts remaking our world. The breakdown is produced and distributed by CoinDesk.
0:40.9	What's going on, guys? It is Tuesday, January 10th, and today we are going macro and talking
0:46.8	about the latest comments out of the Fed. Before we get into that, however, if you are enjoying
0:51.6	the breakdown, please go subscribe to it, give it a rating, give it a review, or if you want to dive deeper into the conversation,
0:57.2	come join us on the Breakers Discord. You can find a link in the show notes or go to bit.ly slash
1:01.8	breakdown pod. All right, friendos, well today I wanted to dig into a bit of a macro day.
1:08.5	And quickly before we do that, over in CryptoLand, just to give a brief update, there are only
1:12.2	a few notable stories which are kind of more along the lines of the same things we've seen
1:16.1	over and over again this year.
1:17.9	The headliner is that Coinbase is letting go of about 20% of its employees, around 950 people.
1:23.8	This is the third round of layoffs at Coinbase since the bear market began. Last June, it cut
1:28.6	1100 jobs, which is 18% of its workforce at the time. Then in November, it let go of another 60 people.
1:35.2	I will say clearly that layoffs suck. CoinDesk estimates that 27,000 crypto employees have been
1:40.7	laid off since the bear market began, and that's 27,000 people whose time and
1:44.7	talent we don't necessarily have access to anymore. At the same time, taking a wider view
	...

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