Billionaire Dan Morehead Says Federal Reserve Making Major Mistake As US Dollar Plummets
The chief executive of the crypto asset management firm Pantera Capital says the Federal Reserve is making a major monetary mistake.
In a new interview with Raoul Pal, billionaire Dan Morehead says the Fed is embroiled in policy error after policy error, rapidly debasing the US dollar in the process.
“I think the Fed really made a couple huge policy mistakes in 2020 and 2021. There was a time where inflation was 8% and the Fed funds rate was zero. That’s called a policy error. And decreasing rates right now when everything’s booming, record everything, record fiscal deficits.
The monetary system is supposed to be the check and balance. It should be the thing that’s balancing excessive fiscal spending. And I just don’t see that. And it really is wild that the Fed is currently cutting. They’re forecasting much more cuts. If anything, they should be hiking.”
Morehead says soaring asset prices in the so-called “everything bubble” are due to the plummeting value of fiat currency rather than appreciation.
“Debasing your fiat currency against everybody else’s fiat currency is a race to the bottom. We can’t all debase against each other. That is the problem. And I think that’s why anything with a fixed quantity is surging up in price relative to the value of paper money…
Everyone’s like, ‘Oh, it’s really wild. Gold’s at a record and the S&P is at a record.’ No, they’re all kind of the same in a relativistic sense. They’re not doing anything. It’s the price of paper money that’s plummeting. And that’s why I think that the US’s policy of ‘let’s just debase our currency until we decide to make iPhones in Georgia or something.’ I don’t know if that’s going to work.”
Generated Image: Midjourney
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Crypto Inflows Surge to $764M for WisdomTree, Q3 AUM Reaches Record $137.2B
Crypto Products Account for 34% of Total Inflows as WisdomTree's Assets Under Management Reach All-Time High

From On-Chain to Reality: The Proxy Economy is Awakening, and Machines Are Starting to Work for Humans
The article explores how the integration of robotics, crypto, and AI technologies is driving the development of the agent economy. It introduces the Virtuals ACP protocol, Butler trading assistant, Unicorn launch platform, and SeeSaw data collection system, showcasing future scenarios of collaboration among humans, AI, and machines. Summary generated by Mars AI. This summary is produced by the Mars AI model, and its accuracy and completeness are still being iteratively improved.

The Surge of ZK Coin Electrifies the Crypto Scene
In Brief ZK Coin starts November with a massive rise, breaking from the broader crypto downturn. The ZKsync Atlas upgrade enables 15,000 TPS, ensuring swift, secure transactions. Vitalik Buterin’s praises on ZKsync stir positive market sentiment for ZK Coin.

CryptoNewsLand Weekly Round Up: Crypto Regulations and Monetary Shifts Define Global Financial Space

