Danielle DiMartino Booth Blasts the Fed for Inequality, Discusses Recessions


Danielle DiMartino Booth of Quill Intelligence gave an excellent interview on Fox Business News, blasting the Fed.

The interview was published on February 7. I first saw it today.

Select Quotes

Inequality: People perceive that Fed policy has tricked down to the top 1 percent. The Fed has facilitated the inequality divide. I found it highly ironic to read the chairman [Jerome Powell] remarks last night because the Fed has been instrumental in widening this inequality by looking like they are trying to prop up wall street and the top 1 percent of Americans who own 80 percent of stocks.

European Recession: We've seen Germany and Italian factory orders come in very week. It looks like Europe is going into recession.

China Recession: If you could get clean statistics, it looks like China is also in recession.

US Rate Cuts: I think the forces outside the US are going to be sufficient that we could see the Fed indeed cut rates before the end of 2019.

Goldilocks: There is no doubt that Goldilocks has prevailed so far in 2019. And I think most people are looking for that to continue. But again, we've seen weakening even here in the United States. We've seen weakening in jobless claims, layoff number pick up; We've seen tremendous, record levels of CEO turnover. So under the surface of the water, I would say that things are not all they they appear to be right now, if you are just looking through the lens of the stock market.

Excellent comments from DDB.

Mike "Mish" Shedlock

Comments (8)
No. 1-4

Have her run on a Presidential ticket with Nikki Haley in 2020. The DNC won't know how to react.


The truth is also Trump has done more extending and pretending. When the economy tanks the next time down wont be pretty. Whomever seizes on what both parties have done can capitalize.


There's no doubt that Fed decisions have implications for the distribution of wealth. Quantitative easing helped those classes of people that allocate more to stocks and are able to borrow in the primary capital markets(large corporations, banks and wealthy individuals). Savers get hurt because they are using vehicles like CD's. and treasury bonds. Mortgage holders don't benefit that much , they frequently can't refinance, wind up paying closing costs that eat into the benefit or don't see rates that drop point for point with the treasuries.


"Danielle DiMartino Booth Blasts the Fed for Inequality"

Disparity. Everyone earning $10,000 a year is equal to all others earning the same. Everyone earning $100,000 a year is equal to the same, even if someone else earns $1,000,000 a year. However, there is a huge disparity between those making $100,000 a year and those making $1,000,000 a year.

There has never been income equality. Stable prices is ZERO inflation, not 2% inflation. Even .01% inflation is not stable prices. There has always been a disparity in income between people for various reasons.

There have always been the rich and the poor, thus there has always been wealth/income inequality. Even when the top tax rate was 90%, Howard Hughes earned far more and was far richer than the average worker.

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