Federal Reserve FLMC meeting and rate cut predictions

Danielle DiMartino Booth, CEO and Chief Strategist for QI Research, a research and analytics firm, returns to The Julia La Roche Show for episode 143. 

In this episode, Danielle provides an update on the economy, highlighting the challenges faced by the job market and the increase in layoffs. She discusses the impact of the white collar recession and the decline in net worth for high-income individuals. DiMartino Booth also shares her insights on the market performance and the Federal Reserve's approach to interest rates. She suggests a question for Fed Chair Powell regarding the regulatory changes and their impact on the financial system. Additionally, DiMartino Booth emphasizes the importance of backlogs as an indicator and discusses the current state of the economy in an election year.

A global thought leader in monetary policy, economics, and finance, DiMartino Booth founded QI Research in 2015.  She is the author of FED UP: An Insider’s Take on Why the Federal Reserve is Bad for America (Portfolio, Feb 2017), a business speaker, and a commentator frequently featured on CNBC, Bloomberg, Fox News, Fox Business News, BNN Bloomberg, Yahoo Finance and other major media outlets.  Prior to QI Research, DiMartino Booth spent nine years at the Federal Reserve Bank of Dallas. She served as Advisor to President Richard W. Fisher throughout the financial crisis until his retirement in March 2015. Her work at the Fed focused on financial stability and the efficacy of unconventional monetary policy.

DiMartino Booth began her career in New York at Credit Suisse and Donaldson, Lufkin & Jenrette where she worked in the fixed-income, public equity, and private equity markets. DiMartino Booth earned her BBA as a College of Business Scholar at the University of Texas at San Antonio. She holds an MBA in Finance and International Business from the University of Texas at Austin and an MS in Journalism from Columbia University.

Links: 

QI Research: https://quillintelligence.com/subscriptions/

Twitter/X: https://twitter.com/dimartinobooth

Fed Up: https://www.amazon.com/Fed-Up-Insiders-Federal-Reserve/dp/0735211655

Takeaways

• The job market is facing challenges, with layoffs increasing and the demand for labor collapsing.
• The current recession can be characterized as a white collar recession, with high-income individuals experiencing a decline in net worth.
• The market performance is driven by the anticipation of Federal Reserve rate cuts, but the timing and extent of these cuts are uncertain.
• Backlogs serve as an important indicator of the economy, reflecting pent-up demand and potential future trends.
• The upcoming election is crucial, and voters should be aware of the government's spending and the importance of their vote.

Timestamps 

00:00 Introduction and update on the economy

03:08 Job market and layoffs

08:25 White collar recession

10:03 Market performance 

15:06 Outlook for interest rates

17:19 Question for Fed Chair Powell

18:41 The importance of backlogs as an indicator

20:05 Recession

21:34 Journalism background and Warren Buffett

24:00 Parting thoughts