Episode 393

MI232: Understanding Quantitative Easing w/ Alfonso Peccatiello

Rebecca Hotsko chats with Alfonso Peccatiello. In this episode, they discuss what conventional monetary policy vs unconventional monetary policy is, why the Fed uses unconventional policies like quantitative easing (QE), what QE is, how it works, how QE impacts the stock market and asset prices, what happens to asset prices when the Fed starts quantitative tightening, what is driving the recent strength in the US dollar, how a stronger dollar impacts corporate earnings and profits, and so much more!

The Intrinsic Value Podcast - The Investor’s Podcast Network

November 1, 20221h 8m

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Show Notes

IN THIS EPISODE, YOU’LL LEARN:

01:30 - What conventional monetary policy is and what are the main tools the Fed uses to achieve its two part mandate.
01:30 - What unconventional monetary policy is and why central banks use these tools.
09:26 - What is quantitative easing (QE) and how it works.
14:41 - How the use of QE leads to artificially inflated asset prices.
19:30 - How does the Fed’s quantitative tightening impact mortgage rates?
41:11 - What will happen to stock prices as the Fed unwinds its balance sheet?
54:11 - Why UK pension funds started to default and could this happen in the US?
01:00:02 - What is driving the recent strength in the dollar?
01:03:43 - What would cause the Fed to pivot from tightening to QE again?
01:05:47 - How a strong dollar impacts corporate earnings and profits.
And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out Alfonso's financial writings: The Macro Compass.
Related Episode: Central Banking 101 w/ Joseph Wang - MI190.

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