Topic: Federal Reserve

The Federal Reserve is struggling to control inflation caused by massive capital inflows into AI data center buildouts. Investors are increasingly favoring high-yield corporate bonds and data center loans over riskier venture capital or IPOs. This shift in capital allocation is driving up interest rates as the Treasury competes with the private bond market.

Trump criticizes the Federal Reserve for keeping interest rates too high and suggests a "swipe of a pen" could resolve deficits. Speculation follows that the proposed $5,000 dividend might be issued as a government-backed stablecoin to ensure the money is spent within the United States.

New Fed Chair Kevin Warsh speaks at Jackson Hole about sustained inflation, while the hosts express skepticism about the central bank's ability to control the money supply. The segment briefly touches on UN Secretary-General António Guterres' warnings about a fast-growing Ebola epidemic. Calacanis also shares his history with Bitcoin, admitting he sold 65 BTC in 2015 but has since returned to the market.