In this episode, Danielle DiMartino Booth, CEO of QI Research and former Fed insider, explains why she's "less fed up" despite disagreeing with Fed policy - praising Jerome Powell's decision to stay on as governor to protect Fed independence, drawing parallels to Marriner Eccles' 1948 stand against President Truman. Danielle calls Powell's move "patriotic" while warning we're "flirting with a liquidity crisis" as non-banks have become "too big to fail." She discusses the challenges Kevin Warsh will face as incoming chair, argues the Fed has failed its employment mandate, and explains how the economy cannot withstand persistently high oil prices and interest rates simultaneously.

Links:

Danielle's Twitter/X: https://twitter.com/dimartinobooth

Substack: https://dimartinobooth.substack.com/

YouTube: https://www.youtube.com/@DanielleDiMartinoBoothQI

Fed Up: https://www.amazon.com/Fed-Up-Insiders-Federal-Reserve/dp/0735211655

Timestamps:

0:00 Introduction - Fed day with Danielle DiMartino Booth

0:32 Powell's last time at the podium - Takeaways

1:48 The Eccles parallel - Fed independence fight in 1948

2:39 Why Danielle is "less fed up" today

2:57 The Powell move - Staying on as governor

4:20 Risk of being perceived as shadow Fed chair?

5:39 Triple hawkish dissent

6:16 Unprecedented dissent levels - Early resistance signs?

7:57 Powell's legacy and how it changed today

9:22 The Eccles legacy - Established as governor, not chair

10:27 Powell's move was "patriotic" - Protecting Fed independence

11:27 What is your read on Kevin Warsh?

12:48 Liquidity crises take precedence - The Mike Tyson test

13:40 0% chance of rate cut - Should they have cut?

14:47 Fed has failed its employment mandate

16:48 Oil prices and disinflationary demand destruction

17:17 Bankruptcies accelerating, layoffs increasing

18:01 Home prices falling - Thinking about inflation wrong

19:16 The valley of death at $100k income level

19:32 Higher for longer means more pain

20:34 How does building consensus at the Fed work?

22:04 Flirting with a liquidity crisis - How big is the risk?

22:38 Pummeling the housing market

23:26 More sellers than buyers - Biggest disconnect ever

24:09 Investment boom or panic stockpiling ahead of tariffs?

25:27 Economy can't withstand high oil and high rates

28:07 Base case for rest of 2026 - Fed cuts

30:43 If you could advise Kevin Warsh, what would you say?

32:17 Bloomberg chat - hot takes with institutional investors

33:34 What's keeping you up at night and making you hopeful?

35:37 Non-banks now too big to fail

37:06 Systemic risk from non-banking system

37:25 Mother's Day tribute - Legacy and three graduating kids

38:03 Closing thoughts