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Welcome to the Tudor Dixon podcast.

We have someone with us here today that can talk both AI and the Federal Reserve.

And that's a hard one to choose right now because everything going on with the Fed, but also everything going on with AI.

So we said, we're going to start with the Fed and talk about what's going on there

because I've got Todd Sheets with me. He has a successful, he had a highly successful career

in investment banking, but he also wrote the book on what really happened in the 2008 crisis.

So Todd, thank you so much for joining me today. Tudor, thanks for having me. It's delightful

to be with you. Absolutely. So we, you talked about the housing crisis in 2008. You actually

kind of put that back on the Fed. Now we're in this situation where we're not seeing interest rates

come down. Can you, for the average American, can you kind of explain what exactly is going on, what you think should be happening?

Yeah. So, you know, the Federal Reserve controls short-term interest rates, which gives them unprecedented and extraordinary ability to influence the economy.

You know, in a credit-driven economy, you're basically controlling the cost of borrowing and finance,

at least at the short-term end of the spectrum, which basically allows them to influence,

as I think a quote I had from the book, was, you know, everything from stock prices on Wall Street

to housing prices in Honolulu, you know, everything across the board, to

auto finance in Alaska even.

So one of the problems that we've had, and I point this out in the book, and it goes,

it's much deeper and goes much longer than this, but starting in the 1990s, we had the Federal

Reserve stepping in to push down interest rates

in a number of situations to try and keep globalization from having a negative, too negative

of an impact in the economy.

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