Fed Needs Bigger Rate Cut Cycle, Concerns of 'Back-Peddling'

Danielle DiMartino Booth says Fed Needs Bigger Rate Cut Cycle, Concerns of 'Back-Peddling'

Danielle DiMartino Booth says the Fed's rate cut projections aren't strong enough, warning the FOMC will "eat its word" after touting a strong economy. She argues the job market doesn't show as rosy of a picture as Jerome Powell paints.

I some sympathy for a part of that, a lot of sympathy for another part, an no sympathy at all for one part.

I strongly agree with Booth on the jobs picture. Heck, I have pretty much been leading the way in my posts.

Regarding the economy, I called for recession in May or June. Without some serious revisions we are looking at 2025.

But Booth thought it began in October of 2023 and to that I repeatedly said no. I joined the recession club in May.

"The Fed Will Eat Its Word"

Yep, but when? More importantly how?

Q: Is there zero chance Trump does not set off another round of inflation causing the Fed to hike?

A: No

What is the Inflation Outlook?

Powell Doesn't Know

Booth Doesn't Know

I Don't Know

Because Nobody Knows