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Why the Fed Keeps Denying Its Role in Increasing Inequality
The Federal Reserve expects low inflation, says rates will stay close to zero through 2022 and keeps lying about the role of central banks in increasing inequality.
Updated Sep 14, 2021, 8:50 a.m. Published Jun 11, 2020, 7:15 p.m. 2 min read
The Federal Reserve expects low inflation, says rates will stay close to zero through 2022 and keeps lying about the role of central banks in increasing inequality.
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This episode is sponsored by Bitstamp and Ciphertrace.
Today on the Brief:
- Three Arrows holds more than 6% of Grayscale Bitcoin Trust
- New platform for censorship-resistant blogging
- Coinbase announces new token potentials as anti-surveillance hodlers flood out
Today's main topic: The Fed's inequality problem
Some key takeaways from yesterday’s Federal Open Markets Committee meeting:
- Interest rates are likely to stay near zero through 2022
- Unemployment anticipated to average between 9% and 10% during last three months of 2020
- Economy expected to contract 4% to 10% this year
- No specific discussion of yield curve control
- Inflation expected to be 1.0% this year and 1.5% in 2021, lower than Fed target of 2%
- According to Chairman Powell, inequality has nothing to do with Fed policy
See also: Cellphones, Bitcoin and the Citizen Tools of Anti-Authoritarianism, Feat. Alex Gladstein
On this episode, NLW recaps the above and dives deeper on two of the points:
- Net inflation stats gloss over specifics, including food prices that have been rising at an annual rate of 17.5%
- The Fed’s pronounced role in exacerbating inequality by propping up artificially high asset prices, effectively locking low and middle income households out of the mechanism for economic advancement
For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.
Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.
あなたへの
NYDIG, meanwhile, rejected the basis-trade theory, citing the large discount and the lack of an unusual spike in corresponding CME bitcoin futures volume.
知っておくべきこと:
- A $1.26 billion block sale of BlackRock’s IBIT shares was likely a rapid exit by a large investor, not an arbitrage unwind, according to NYDIG.
- The seller of the $1.26 billion IBIT block accepted a 2.3% discount ($29.5 million loss), signaling a priority on speed and certainty over maximizing price.
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