Sim Kaur

We're not really like...

that creative when it comes to naming them.

But they are the bank for banks.

And when normal banks like your local bank, your Wells Fargo, your American bank, your New Zealand bank, your NAB, when those banks come along and they go, hey, Sim, I will offer you a mortgage.

I will give you the cash for your mortgage, but I'm going to give you it at a mortgage rate of 4%.

they only set that rate because of how much it costs them to have the debt.

And so the Federal Reserve goes, hey, we will give you money at 3% and therefore you can sell it on at 4%.

But if the Fed goes, we're going to set the rate at 5%, then the retail banks, the banks that you and I go to to get a mortgage or to get a loan or to put our money into, they have to set their mortgage rates slightly higher so they can make a little bit of profit.

I mean, that's what the banks...

You thought the banks were here to look after your money?

No.

They are here to make a profit off your money.

And so that leads into the question, well, Sim, who is the Fed in the States?

Like, what's going on here?

And recently, the new Fed chair has been sworn into the US.

This is kind of like when the Pope changes, but in the financial world, like the finance bros have a new Pope.

His name is Kevin Walsh.

He was replacing Jeremy Powell.

And this was...

Not something that people were like surprised by because you can only be in the Fed chair for so long.