Monetary Matters with Jack Farley

Latest Episodes:

Fed Governor Miran: The Case For Big Rate Cuts | Miran on Deterioration in Labor Market, the Neutral Rate of Interest, and Fed Balance Sheet Policy Nov 06, 2025

Show notes

Learn more about the VanEck Rare Earth and Strategic Metals ETF: https://vaneck.com/REMXJack

Stephen Miran, member of the Federal Reserve Board of Governors, has dissented in two consecutive Fed FOMC meetings since his joining the Board in September 2025, preferring to cut by 50 basis points (0.50%) instead of 25 basis points (0.25%). Governor Miran joins Monetary Matters today to explain in detail his reasoning for why he thinks considerably lower interest rates are appropriate. Tariffs, fiscal policy, immigration, weakening labor market. Recorded on November 4, 2025.

Governor Miran’s speech on September 22, 2025, “Nonmonetary Forces and Appropriate Monetary Policy”:

https://www.federalreserve.gov/newsevents/speech/miran20250922a.htm

Follow Governor Stephen Miran on Twitter https://x.com/SteveMiran

Full unedited (other than for form) transcript of this interview: https://docs.google.com/document/d/1vaZ8-ArOIdDKnnkeoxp92nMBq52aXxNA/edit?usp=sharing&ouid=113485899782770300642&rtpof=true&sd=true

Note: in Jack’s introduction, he makes an incomplete remark where he says Miran was “appointed by President Trump.” In actuality, Miran was nominated by Trump, and approved by the Senate.

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This Hedge Fund Trying to Become the Top Pod Shop in Crypto is Rethinking the Multi-Manager Hedge Fund Model | Anatoly Crachilov of Nickel Digital Nov 04, 2025

Show notes

This Other People’s Money episode is brought to you by CAIA.nxt. Learn more about their alternatives education courses for investment advisors and get 10% off with code MMTEN: https://caia.org/content/welcome-monetary-matters-and-other-peoples-money-listeners

Anatoly Crachilov, CEO and Co-Founder of Nickel Digital Asset Management, joins Other People’s Money to discuss why crypto is the perfect asset class for the multi-manager pod shop model. He also explains how Nickel is taking a “West Berlin” approach to partnering with external traders compared to the “East Berlin” approach of many traditional pod shops where non-competes and strict control of IP is the norm. He also discusses why 2025 has been a difficult year for crypto traders, how their team is managing the choppy markets, and how scaled up pods and incubation stage pods managed the extreme volatility in October.

Follow Anatoly Crachilov on LinkedIn: https://www.linkedin.com/in/anatoly-crachilov/

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Timestamps

00:00 Intro

00:38 CAIA.nxt

01:24 Multi-Manager Origin Story

03:12 No Central Book or Alpha Capture

04:32 Expanding Number of Pods

06:15 Technology Enabled Growth

10:09 Onboarding a New Pod

14:38 Benefits of Crypto's Infinite Divisibility

15:58 CAIA.nxt

16:54 Determining the Scalability of Strategies

18:03 Minimum & Maximum Pod Sizes at Scale

18:33 Measuring Risk Adjusted Returns

20:34 Pod Compensation and Fund Level Fees

24:43 Winning the War for Talent

29:29 Pods Can Be Independent Prop Shops and Single Managers

35:03 Demand for Crypto Multi-Manager Funds

39:02 Reducing Risk in Crypto with 3rd Party Settlement & Custodians

46:08 Crypto Still Has Low Liquidity

49:41 The Cost of Poor Trade Execution in Crypto

53:16 Current Environment for Crypto

58:22 Risk Management Adjustments in a Choppy Year

01:02:04 Different Testing Environments for New Pods

01:06:30 What Happens When a Scaled Pod Has a Drawdown?

01:09:35 Conclusion

More Credit Problems, Mag 7 AI CapEX Continues, and Money Market Stress | Jack & Max Nov 02, 2025

Show notes

This Monetary Matters episode is brought to you by Fiscal.ai. Sign up for a 2-week free trial and get 15% off any paid tier at: http://fiscal.ai/mm

Jack Farley & Max Wiethe breakdown yet another credit “cockroach” that appears to be more related to fraud than overall market weakness. They also discuss the Mag 7 earnings report and the continued onslaught of AI CapEx spending that many believe has entered bubble territory. Finally, they breakdown this week’s fed decision and why big changes to both the Fed balance sheet and the rate cutting cycle could be coming up soon.

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Timestamps:

00:00 Fiscal AI Intro

00:12 More Credit Problems

11:08 Mag 7 Earnings

16:43 Fiscal AI Mid Roll

19:29 Are CapEx Estimates Still Too Low?

28:07 AI CapEx “Bubble” Winners and Losers

34:11 Mag 7 Becoming Capital Intensive?

43:33 Fed Meeting Breakdown

52:11 Market Impact of December Fed Meeting

57:11 Fiscal AI

Joseph Wang: Fed Likely To Have To Expand Balance Sheet To Avoid Losing Control Over Repo Market Oct 30, 2025

Show notes

Joseph Wang, former senior trader for the New York Fed and author at FedGuy.com returns to Monetary Matters at a critical juncture to break down the October Fed meeting and the Fed's decision to stop reducing its balance sheet on December 1st and thereby end QT (Quantitative Tightening). Wang, a veteran of money markets, explains the stress he sees in repo markets and why he thinks the Fed has to go further and actually start expanding its balance sheet in order to inject enough liquidity to calm the repo market down. Recorded October 29, 2025. Joseph's piece on FedGuy, "Balance Sheet Dominance": https://fedguy.com/balance-sheet-dominance/ Follow Joseph Wang on Twitter https://x.com/FedGuy12 Follow Jack Farley on Twitter https://x.com/JackFarley96 Follow Monetary Matters on: Apple Podcast https://rb.gy/s5qfyh Spotify https://rb.gy/x56dx5 YouTube https://rb.gy/dpwxez

The Liquidity Divergence Between East and West | Michael Howell on Deteriorating Federal Liquidity While People’s Bank of China (PBOC) Injects Stimulus and Pumps Gold Oct 29, 2025

Show notes

Monetary Matters listeners can get 20% discounted access to an annual subscription of Michael Howell’s Capital Wars here: https://capitalwars.substack.com/MonetaryMatters

Michael Howell of GL Indexes and the Capital Wars Substack returns to Monetary Matters with alarming news. His readings of liquidity from over 90 central banks indicate that global central bank liquidity is deteriorating, led primarily by the Federal Reserve. Howell’s measure of Fed liquidity is weakening because the Fed’s Reverse Repo (RRP) facility is effectively fully drained. This is partially offset by U.S. Treasury issuing lots of short-duration bills, as well as People’s Bank of China injecting 7+ Trillion Yuan into its money markets and pumping the price of gold in yuan terms. Howell sees a growing divergence between East and West and warns that 2026 “won’t be a great year for financial assets.” Recorded on October 21, 2025.

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Credit Concern is Overblown Argues Financials Hedge Fund Manager Beating the S&P 500 | Derek Pilecki of Gator Capital Oct 28, 2025

Show notes

Derek Pilecki’s hedge fund Gator Capital has outperformed the S&P 500, compounding at over 22% since inception while focusing exclusively on financial sector stocks. In this interview Derek discusses why he thinks recent concern in the financial sector is overblown, how he has grown his firm’s assets to over $300m, and why he believes that good performance is simply not enough to grow a successful hedge fund. Derek also discusses how he manages his mutual fund alongside his hedge fund and why he doesn’t see the vehicles as competing but serving two separate investor bases.

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The Core of Dollar Weakness | George Saravelos, Deutsche Bank's Head of FX Research, on Growth Differentials, Fed Rate Cuts, and 4% U.S. Current Account as Key Threshold For USD Declines Oct 22, 2025

Show notes

George Saravelos, head of FX research at Deutsche Bank, joins Jack on Monetary Matters to go deep into the world of currency trading. Jack and George discuss central bank independence, emerging markets, carry positions, hedging, and more. George gives a clear and intelligent look at the often-opaque foreign exchange market and explains his views on it. Don’t miss this episode. Recorded on October 20, 2025.

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George’s FX podcast for Deutsche Bank https://tinyurl.com/4nh5d3y9

George's Primer, "The Brilliant World of FX": https://www.dbresearch.com/PROD/RPS_EN-PROD/The_Brilliant_World_of_FX_-_A_Primer/RPS_EN_DOC_VIEW.calias?rwnode=PROD0000000000464258&ProdCollection=PROD0000000000542285

The Dollar’s Impossible Trifecta | Jon Turek on Why USD Hedging Flows Will Increase Throughout Fed’s Rate Cutting Cycle Oct 20, 2025

Show notes

This Monetary Matters episode is brought to you by Fiscal.ai. Sign up for a 2-week free trial and get 15% off any paid tier at: http://fiscal.ai/mm

Jon Turek of JST Advisors explains why he thinks a decline in U.S. interest rates will make dollar hedging more attractive to foreign owners of U.S. assets. He makes the case for steeper yield curves around the world, reviews the situation in China, and shares his thoughts on the wild bull market in gold. Recorded on October 16, 2025.

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Cockroaches in Credit? | Jack & Max on Zion’s Cali CRE Write-off, Big Bank Earnings Blowout, and First Brands Update Oct 18, 2025

Show notes

This Monetary Matters episode is brought to you by Fiscal.ai. Sign up for a 2-week free trial and get 15% off any paid tier at: http://fiscal.ai/mm

Jack and Max break down the beginning of earnings season. Jack reviews a new credit flare-up in California’s commercial real estate (CRE) market that affected Zions Bancorporation and Western Alliance Bancorporation, before commenting on the very strong earnings from the large banks such as Bank of America and JPMorgan. Max and Jack then discuss precious metals, as well as current market positioning as revealed by brokerage data. Recorded on October 17, 2025.

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Bringing Long/Short Hedge Fund Strategies to ETFs | David Orr (Bonus Episode) Oct 16, 2025

Show notes

This is a special bonus episode of OPM with David Orr. In my first conversation with David, we only discussed his hedge fund that has crushed the S&P 500 since its inception in 2021. In addition to his hedge fund, he also runs the Militia Long/Short Equity ETF ($ORR) which since its inception in January 2025 has also beaten the S&P 500 running a similar but still distinct long/short strategy from the one he employs at his hedge fund. We discuss his unorthodox decision to launch the ETF when the hedge fund was going so well, how he is managing the different liquidity needs, his dual fiduciary duties, differing compliance realities, and the increased transparency of the ETF wrapper.

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