Peter's back to recap the last week in markets and economic news. This episode starts with April's dismal stock performance and also discusses Jerome Powell's most recent appearance. Peter wraps up the episode by recounting the Bitcoin debate he participated in on Friday.

Peter notes that April's losses in the stock market were in part created by doubt about the Fed's future rate cuts:

"The reason for that was heightened talk not just about the Fed not cutting rates, but for the first time, I heard people discussing the possibility that the Fed might have to raise rates, that the next move may in fact be a hike and not a cut. Now that's the first time that I've heard any mainstream discussion of that possibility. … I've been saying that that is the correct policy. If the Fed really is data-dependent, and if the Fed really wants to fight inflation, based on the data, they should resume their hikes."

Despite this possibility, markets are unduly optimistic. The Fed's historical record is not very successful, even decades ago when America's fiscal health was much better: