#221 Danielle DiMartino Booth: Fed Has 'Frayed Nerves,' Jobs Data 'Statistically Impossible' & How A Recession Could Get 'Pinned' On Trump

Danielle DiMartino Booth, CEO and chief strategist of QI Research and former Federal Reserve insider, joins the Julia La Roche Show for an in-person interview to discuss why she sees "frayed nerves" at the Federal Reserve about the incoming Trump administration. In this wide-ranging conversation, DiMartino Booth reveals why 18 months of downward revisions to jobs data is "statistically impossible," explains how bureaucrats could start "releasing the Kraken" with true economic data that gets "pinned on Trump," and warns about the explosion of buy-now-pay-later debt that's not showing up in official credit statistics. She also shares a powerful message about the growing divide between Wall Street and Main Street

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

Timestamps:

00:00 Welcome Danielle

01:00 Reaction to the FOMC, frayed nerves at the Fed

3:08 Fed spooked by inflation

3:45 Fed went in opposite direction of staff presentations

6:30 10-Year

8:03 A "closer call"

9:12 Does the Fed make policy for the public good?

13:00 Nihilism among younger generations

16:30 The government is buying the economy time, and the Fed is making the wealthier wealthier  

18:48 Are we in a recession?

22:00 Declining consumption is not a prerequisite to recession

24:10 Could Trump inherit a recession?

26:30 Jobs numbers

30:00 Story behind the data

31:20 Trump administration 2.0

37:45 Stock market

39:50 What's keeping Danielle up at night

42:11 Parting thoughts