Tuesday, August 15, 2017

Danielle DiMartino-Booth is the Founder and President of Money Strong, LLC, and Author of Fed UP: An Insider's Take On Why The Federal Reserved Is Bad For America

She began her career in New York at Donaldson, Lufkin  & Jenrette, and Credit Suisse, where she worked fixed income and the public and private equity markets.

In the early 2000s, as a Wall Street escapee writing a financial column for the Dallas Morning News. DiMartino Booth attracted attention for her bold criticism of the Fed's low interest rate policies and her cautionary warnings about the bubbly housing market. Nobody was more surprised than she when the folks at the Dallas Federal Reserve invited her aboard. Figuring she could have more of an impact on Fed policies from the inside, she accepted the call to duty and rose to be one of Dallas Fed president Richard Fisher's closest advisors.

To her dismay, the culture at the Fed--and its leadership--were not just ignorant of the brewing financial crisis, but indifferent to its very possibility. They interpreted their job of keeping the economy going to mean keeping Wall Street afloat at the expense of the American taxpayer. But bad Fed policy created unaffordable housing, skewed incentives, rampant corporate financial engineering, stagnant wages, an exodus from the labor force, and skyrocketing student debt.

Today, the Federal Reserve is still controlled by 1,000 PhD economists and run by an unelected West Coast radical with no direct business experience. The Fed continues to enable Congress to grow our nation’s ballooning debt and avoid making hard choices, despite the high psychological and monetary costs. And our addiction to the "heroin" of low interest rates is pushing our economy towards yet another collapse.

"Fed Up" is DiMartino Booth's clarion call for a change in the way America's most powerful financial institution is run--before it's too late.  Her words are in laymen's term where we can get a firm understanding of the Fed and the intrigue behind closed doors. 

Drawing upon her first-hand experiences at the Fed, this book illuminates how the Fed abdicated its responsibility to the American people both before and after the financial crisis– and how nobody within the Fed seems to have learned or changed from the experience. 

  • Heads of the Federal Reserve are unelected    academics with no real business experience and yet exert a tremendous influence on the American economy.
  • Coastal Fed Banks  (New York, San Francisco) have a disproportionate amount of influence on monetary policy compared to Fed banks in the heartland (Cleveland, Dallas).
  • Economists at the Fed work with outdated data and defunct models in order to create policy that affects real Americans.
  • Staff at the Fed have a revolving door with Wall Street, especially Goldman Sachs. 

We were able to pack a lot into this interview.  Thank you for your questions and/or comments.  You may contact Danielle @dimartinobooth.com.

To listen to my interview with Danielle in its entirety please click below.