The Fed Can Neither Hold Inflation Nor Safely Let It Go

The Essential Conversation ·
Featuring Danielle DiMartino Booth and Jim Bianco

Published on: May 16th, 2022 • Duration: 62 minutes

The Federal Reserve failed to control demand-side price-drivers when it had a reasonable opportunity, and now its suddenly aggressive stance could plunge the U.S. into recession. Danielle DiMartino Booth, CEO of Quill Intelligence, and Jim Bianco, founder and president of Bianco Research, talk about how Fed policy errors got us in this hot inflation mess. “It’s going to feel a lot more like stagflation than a recession,” she tells Bianco. Issues for discussion include the housing market, the U.S. dollar, the credit risk, and rising fear of a global recession. DiMartino Booth also shares “local knowledge” about the Fed, its history, and the political machinations that drive it – essential background as questions about Fed Chair Jerome Powell’s competence and the central bank’s credibility abound. Recorded on May 11, 2022.