Wait, Was the Fed Meeting Dovish or Hawkish?

The Breakdown

Blockworks

Business, Investing

4.8 • 806 Ratings

🗓️ 6 May 2022

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by Nexo.io, NEAR and FTX US. Today on “The Breakdown,” NLW looks at this week’s FOMC meeting. The Fed increased the Federal Funds Rate target by the anticipated 50 basis points, but most of the discussion was about comments from Jerome Powell that the Fed wasn’t even considering a 75bps hike. So was this meeting dovish or hawkish? - Nexo is a secure crypto exchange and crypto lending platform. Buy 40+ hot coins with your bank card in seconds and swap between exclusive pairs for cashback. Earn up to 17% interest on your idle crypto assets and borrow against them for instant liquidity. Simple and secure. Head over to nexo.io and get started now. - NEAR is a blockchain for a world reimagined. Through simple, secure, and scalable technology, NEAR empowers millions to invent and explore new experiences. Business, creativity, and community are being reimagined for a more sustainable and inclusive future. Find out more at NEAR.org. - FTX US is the safe, regulated way to buy Bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - Consensus 2022, the industry’s most influential event, is happening June 9–12 in Austin, Texas. If you’re looking to immerse yourself in the fast-moving world of crypto, Web 3 and NFTs, this is the festival experience for you. Use code BREAKDOWN to get 15% off your pass at www.coindesk.com/consensus2022. - 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 - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsors is “Catnip” by Famous Cats and “I Don't Know How To Explain It” by Aaron Sprinkle. Image credit: Win McNamee/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

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0:00.0	When all is said and done today, you can definitely see the market settling into the same fears it has had for the past couple months.
0:07.5	Recession, stagflation, slowing growth, disinflation, global de-leveraging.
0:12.6	These continue to be the themes.
0:15.9	Welcome back to The Breakdown with me, NLW.
0:20.1	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:25.9	The breakdown is sponsored by nexo.io, near an FTX, and produced and distributed by CoinDesk.
0:33.7	What's going on, guys? It is Thursday, May 5th. Happy Cinco de Mayo. Today, of course, we are talking about the Fed rate announcement yesterday. But before we get into that, if you are enjoying the breakdown, please go subscribe to it, give it a rating, give it a review, or if you want to get deeper into the conversation, come join us on the breakers discord. You can find a link in the show notes or go to bit.ly slash breakdown pod.
0:58.6	Also, a disclosure as always, in addition to them being a sponsor of the breakdown, I also work
1:03.8	with FTX.
1:05.5	So I feel like it's important always to caveat these Fed shows.
1:09.2	Like, why are we spending so much time on the Fed? Isn't it nuts that the
1:13.7	market cares so much about what Jerome Powell has to say? The answer, of course, is yes, it is nuts.
1:19.9	And there are plenty of people who think that the power the Fed has isn't really about monetary
1:24.0	policy itself. Instead, it's about the power of self-fulfilling prophecy.
1:32.3	Basically, the Fed is a marketing body that's marketing the direction they want the economy to go.
1:39.2	And at least for now, the market obliges. This Fed watching is even more silly in the context of Bitcoin and crypto. Ryan Salem from FTX tweeted yesterday,
1:43.1	I remember when Satoshi famously said,
1:45.5	and be sure to closely monitor Fed interest rates. However, all of that said, as we've discussed,
1:51.6	the Fed's battle against inflation is easily the dominant macro theme shaping markets right now,
1:57.0	so here we are. What happened at yesterday's meeting? We got the anticipated half a percentage
2:02.9	point increase in the policy rate, bringing the target range to 0.75 to 1%. The FOMC anticipates
2:09.7	that ongoing increases in the target rate for the federal funds rate will be appropriate.
	...

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