The combined effects of a strong U.S. dollar and aggressive quantitative tightening have the Federal Reserve on track to becoming “the planet’s central bank,” as it continues to aggravate global currency and interest rate markets. That’s according to New York Times best-selling author and founder of The Bear Traps Report Larry McDonald, who joins Raoul Pal for a broad and deep conversation about what’s at stake if the Fed doesn’t begin to walk back its hawkish policies soon. Larry notes that in recent weeks commercial banks’ vulnerabilities have begun to be exposed, though they passed the Fed’s recent stress tests. And he urges investors to be prepared for the possibility of inflation settling at a higher level for the next several years. Recorded on July 20, 2022.