The David Lin Report Fed's Latest Surprise Will Shock Economy | Danielle DiMartino Booth
Oct 30, 2025
Danielle DiMartino Booth, CEO of QI Research and a monetary policy expert, shares her insights on the recent rate cut by the Fed and its implications for the economy and markets. She discusses the likelihood of another rate cut by December, the influence of the government shutdown on policy-making, and how AI investments might alter interest rate sensitivity. Danielle also highlights rising layoffs and the fragile labor market, warning of looming recession risks while cautioning about the potential effects on gold and the dollar.
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Fed Lowers Rate And Halts Runoff
- The Fed cut the policy rate by 25 basis points and ended balance-sheet runoff as of December 1.
- Two FOMC members dissented, showing disagreement over the pace and size of cuts.
December Cut Is Not Guaranteed
- Powell signaled the December cut is not assured, lowering the market's odds for a December move.
- Chair Powell may remain at the Fed through 2028 if FOMC re-elects him despite White House preferences.
Rely On Private Data During Shutdowns
- Use alternative private data when official data is impaired by a shutdown to avoid policy by anecdote.
- Slow policy adjustments if incoming data are scarce, as Powell suggested with the fog driving analogy.