Macro investor Raoul Pal says the Fed is just 'papering up the cracks' of the coronavirus crisis

Episode 13 of Season 2 of The Scoop was recorded remotely with Frank Chaparro, Ryan Todd and Raoul Pal, CEO and founder of Real Vision. 

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The Federal Reserve and the U.S. government are working aggressively to implement policies aimed at addressing the financial crisis triggered by COVID-19 and the economic impact of the societal shutdown.

Americans across the country have begun receiving stimulus checks to recoup lost income. Meanwhile, the Fed has said that it would serve as a backstop for the junk bond market, announcing – for the first time – purchases of corporate bonds, including those in junk territory. 

Such actions have triggered a cavalcade of critics, some of whom argue the stimulus doesn't go far enough to address mounting unemployment. Others say the Fed's actions could result in a surge in inflation.

In an episode of The Scoop, Raoul Pal – legendary macro investor and founder of Real Vision joins The Block's Frank Chaparro and Ryan Todd to examine the current macro backdrop.


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Pal argues that the impact of COVID-19 on consumer of behavior – including a dip in spending on concerts and restaurants – is not being truly appreciated by the markets.

In this episode, we also explore:

  • Why existing stimulus measures are "papering up the cracks" and won't be enough to sustain the economy
  • What he would do if he ran the Fed
  • Why people should be worried about deflation, not inflation
  • How the "dollar is going to break the global system" and how that could benefit Libra or bitcoin 

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Authors

Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].
Ryan Todd is a research analyst at The Block where he focuses on the convergence of fintech and digital assets. Previously he worked at Deutsche Bank as an equity analyst covering consumer finance and payments companies, and also spent time at ConsenSys exploring the broader Ethereum ecosystem. Ryan holds a BS in Economics and Accounting/Finance from Florida State University, and MS Finance from Vanderbilt University.