Intro

Danielle DiMartino Booth, CEO and Chief Strategist for QI Research, a research and analytics firm, returns to The Julia La Roche Show for episode 256 for an FOMC day interview.

Sponsor: This episode is brought to you by Monetary Metals.

https://monetary-metals.com/julia

DiMartino Booth argues that Fed monetary policy remains overly restrictive while the labor market is "anything but solid." She points to concerning indicators including record credit card minimum payments, rising long-term unemployment, and declining full-time jobs. DiMartino Booth makes the case for immediate rate cuts to a floor of 2%, warning the economy now operates "without a safety net" after successive waves of debt-fueled growth. Looking forward, she expresses concern about geopolitical risks while finding hope in the strong work ethic of the younger generation.

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

Substack: https://dimartinobooth.substack.com/

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

Timestamps:

0:00 - Opening commentary on Powell and monetary policy

0:23 - Introduction and FOMC day discussion

1:39 - Arguments that monetary policy is too restrictive

2:49 - Labor market indicators and private sector layoffs

4:13 - Credit card minimum payments and student loan impacts

6:02 - Signs of financial stress in refinancing behaviors

8:10 - Bankruptcy trends and distressed debt exchanges

9:57 - Fed's dual mandate debate

12:05 - Critique of Powell's selective history on Fed actions

13:57 - Job market reality vs. Powell's "solid" characterization

15:48 - Self-employment and full-time job losses

17:50 - Sponsor segment

19:08 - Labor market "scarring" and long-term unemployment

21:12 - Federal debt approaching $38 trillion

22:03 - Analysis of long-term debt cycles since Greenspan

24:16 - Student loan wage garnishment concerns

28:36 - Fed rate cut recommendations

30:10 - Policy pushing money from real economy to financial assets

33:00 - Tariffs discussion - why they're deflationary not inflationary

36:38 - Real-world impacts of import costs

38:26 - What keeps Danielle up at night - geopolitical concerns

39:53 - What gives her hope - younger generation's work ethic

42:17 - Information about Qi Research and closing thoughts