Dominique Dwor-Frecaut on the US Economy, the Fed and Implications for Risk Assets
In this episode, Dominique Dwor-Frecaut shares her journey from working in large organizations such as the IMF and the New York Fed to her current role in a startup called Macro Hive. She discusses the culture of meritocracy, openness to ideas, and learning from mistakes that defines Macro Hive, and how it differs from her previous experiences.Topics Discussed• Insight into the culture of meritocracy at Macro Hive and the value of diverse opinions and contributions• Comparison of policy enactment in the US and Europe, with a focus on the influence of cultural undertones• Discussion on the current financial landscape, with strong growth, high but stable inflation and a dovish Fed• Analysis of the impact of lower energy prices on household income, manufacturing and services• Examination of the US fiscal proflicacy and its implication• Discussion on the correlation between energy prices and non-energy inflation• Insights into the Fed's focus on the employment leg of the mandate and its disregard for the inflation leg• Discussion on the potential for a financial crisis due to high levels of debt and the possibility of the Fed tightening prudential rules• Discussion on the potential impact of China's economic situation and the US banking sector crisis on the global economy• Predictions for the future, including the possibility of higher inflation and financial volatilityThis episode provides a deep dive into the complexities of the current financial landscape, the potential risks, and predictions for the future. It's a must-listen for anyone interested in gaining a nuanced understanding of the economic dynamics at play and the potential implications for the future.This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.