Why the Fed May Have to Hike Far Higher Than Expected | Henry Peabody on the Fed’s Triple Mandate and Uneven Transmission of Monetary Policy

Podcast: Monetary Matters with Jack Farley · Jack Farley

Opublikowano: 2026-09-24

Henry Peabody, senior investment strategist at GMO, joins Monetary Matters to explain why the Fed has an unofficial third mandate: managing how credit flows through an economy that is increasingly outside the banks. With private credit and fixed-rate borrowing loosening the link between Fed policy and the real economy, Henry argues that rate hikes are hitting consumers and weaker borrowers while large corporates and the AI complex keep borrowing almost regardless of cost. That bifurcation, he says, means the Fed may have to take rates higher than anyone expects to cool demand, adding risk to markets. Jack and Henry...