Jun 12, 2020
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: Why the Fed keeps denying its role in inequality
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
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