Liz Ann Sonders and Kathy Jones discuss this week’s Federal Open Market Committee (FOMC) meeting and the latest interest rate cut. They also analyze some of the details of what is driving the Fed’s decisions in light of the government shutdown.Next, Kathy Jones is joined by David Beckworth. Kathy and David discuss the complexities of the Federal Reserve's balance sheet, the broader implications of monetary policy, and the emerging landscape of stablecoins and central bank digital currencies (CBDCs). They...
Liz Ann Sonders and Kathy Jones discuss this week’s Federal Open Market Committee (FOMC) meeting and the latest interest rate cut. They also analyze some of the details of what is driving the Fed’s decisions in light of the government shutdown.
Next, Kathy Jones is joined by David Beckworth. Kathy and David discuss the complexities of the Federal Reserve's balance sheet, the broader implications of monetary policy, and the emerging landscape of stablecoins and central bank digital currencies (CBDCs). They discuss the challenges the Fed faces in managing its balance sheet, the potential impact of stablecoins on the financial system, and what these developments mean for investors. David outlines three potential steps the Fed could take to downsize the balance sheet: asset swaps, managing the Treasury General Account (TGA), and improving ceiling facilities.
You can keep up with David Beckworth by following his podcast, Macro Musings, and his Substack, “Macroeconomic Policy Nexus.”
On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting.
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Cryptocurrency-related products carry a substantial level of risk and are not suitable for all investors. Investments in cryptocurrencies are relatively new, highly speculative, and may be subject to extreme price volatility, illiquidity, and increased risk of loss, including your entire investment in the fund. Spot markets on which cryptocurrencies trade are relatively new and largely unregulated, and therefore, may be more exposed to fraud and security breaches than established, regulated exchanges for other financial assets or instruments. Some cryptocurrency-related products use futures contracts to attempt to duplicate the performance of an investment in cryptocurrency, which may result in unpredictable pricing, higher transaction costs, and performance that fails to track the price of the reference cryptocurrency as intended
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