On the heels of Federal Reserve Chair Jerome Powell’s much-anticipated speech at Jackson Hole, markets responded with exuberance. Investors cheered what they perceived as a clear pivot toward rate cuts — but behind the headlines, former Fed insider and current CEO of QI Research, Danielle DiMartino Booth, offered a deeper, more cautionary take.
As someone who has worked within the Federal Reserve system and now leads independent macroeconomic research, Booth has long criticized the Fed’s policy stance as being too slow to react to the evolving economic landscape. In a recent in-depth conversation, she unpacked Powell’s latest comments, the implications for the U.S. economy, and what investors need to brace for in the months ahead.
The Fed’s Pivot: Too Little, Too Late?
Booth didn’t mince words when assessing Powell’s recent remarks. According to her, the Fed has been behind the curve for months — even quarters. “Powell’s a little bit too late to this,” she said. “I’ve been highly critical of him suggesting that in May, June, and July, the Fed should have already been in an easing stance.”
What surprised many — including Booth — was Powell’s acknowledgment that the labor market wasn’t nearly as strong as previously
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