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Hello, everyone. You're watching The Hash on Coin Desk TV. And if you're listening to us,

you're listening on the Coin Desk Podcast Network. I'm Jen Sanassi. We have Will Foxley,

Wenio, and Adam B. Levine on today's midweek show. Adam,

you're going to kick us off with some more news about inflation.

I just love talking about this. Thanks, Jen. Today we've got an excellent story from

coin desks Helene Braun that shines a light on just how out of step the Jerome Powell-led

U.S. Central Bank really is in their fight against inflation compared to past examples.

The last time the U.S. official levels of inflation this high, the Federal Reserve acted with a lot

more urgency than they are today. At the core of this issue is the Taylor principle, which states

that the real interest rate should be raised, quote, more than one for one

when inflation increases. In other words, if you want to bring inflation down, you need to have a base

cost to borrow money that exceeds that rate. Otherwise, why wouldn't you just borrow cheap money

and invested in something that inflation will push the price up in, which will then itself

contribute to the price going even higher as others followed that example. Dan Mooreorhead of Pantara Capital recently posted a pretty revealing chart covering this dynamic

from the 1970s through today that I think does a good job of illustrating this.

Okay, so here we're looking at the white line is the real Fed funds rate.

The gold line is the inflation rate and the gray shadedshaded area represents just how out of whack these two

numbers are. You'll notice that this chart, which goes back to the 1970s, shows that these numbers

...