The Julia La Roche Show #277 Danielle DiMartino Booth: What the historic Fed dissent really exposed about Powell's leadership crisis and why Trump's relentless pressure campaign could trigger an Armageddon scenario
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Jul 31, 2025 
Danielle DiMartino Booth, CEO and Chief Strategist at QI Research, is a leading expert on the Federal Reserve and the U.S. economy. She delves into the historic double dissent at the FOMC, asserting it reflects deeper issues in Powell's leadership. DiMartino critiques Trump’s growing pressure on the Fed, warning it could lead to an economic meltdown. She also highlights alarming signs of recession, including job losses and deflation in key sectors, challenging Powell's optimistic take on the job market.
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Fed's Historic Dissents Reveal Tension
- The Fed's historic double dissent indicates serious internal disagreement and possible hidden third dissent.
- The softened statement language suggests the Fed is trying to placate more members than just the two dissenters.
Powell's Dismissive Leadership Style
- Jerome Powell dismissed the dissenters publicly, emphasizing the "majority" support and using the word "efficiently" repeatedly.
- This signals a stark divide and a leadership style focused on projecting control despite internal conflicts.
Rare Dissents Mark Fed Debate Revival
- Fed dissents have been almost non-existent since 1996 due to apprehension about public transcripts.
- The recent dissents show a return to healthy debate within the Fed, which was previously suppressed.