The Julia La Roche Show
#235 Danielle DiMartino Booth: Disinflation Signs, Job Market Stress, and More Rate Cuts Than Expected
Feb 20, 2025
Danielle DiMartino Booth, CEO of QI Research and author of "Fed Up," dives into pressing economic issues. She discusses signs of disinflation, including falling rents and rising job cuts, suggesting more Fed rate cuts might be on the horizon. DiMartino Booth raises alarms about student loan delinquencies impacting credit, and the shifting dynamics in the housing market favoring buyers. The conversation also touches on the emergence of a 'white collar recession' and the urgent need for affordable housing to support changing demographics.
34:44
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Quick takeaways
- Danielle DiMartino Booth highlights the rising signs of disinflation coupled with significant job market stress that could prompt unexpected Fed rate cuts.
- The increasing layoffs in both private and public sectors may signal a white-collar recession, complicating consumer spending and economic stability.
Deep dives
Fed Minutes Highlights
The recent FOMC minutes revealed that the Federal Reserve expresses uncertainty regarding the inflation outlook and employment market, acknowledging that inflation could rise or fall without clear direction. They indicated a need to monitor the debt ceiling closely, as this could influence monetary policy and the handling of the Fed's balance sheet. Specifically, the discussion highlighted concerns that the government’s ability to issue new debt could impact liquidity in the economy, complicating the Fed's quantitative tightening efforts. As this situation unfolds, the Fed's commentary on these developments will be critical for understanding potential shifts in their monetary policy approach.
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