Kitco News, Released on 10/27/21

The Federal Reserve has kept its monetary policy “inappropriately” too easy for too long, triggering inflation. And now the central bank could be forced to tighten aggressively, said Danielle DiMartino Booth, CEO of Quill Intelligence.

“Quantitative easing is a failed experiment,” Booth told Michelle Makori, editor-in-chief of Kitco News. “We have much more going on here than supply chain disruptions. And there are much more problematic forms of inflation that I don’t think [Fed Chair] Jerome Powell is prepared to acknowledge. But it is the sticky type of inflation that the Fed has to be most concerned with. And that is beginning to bleed through into housing and rental inflation.”

With so much liquidity added to the monetary system, DiMartino Booth pointed out that the Fed is stuck between a rock and a hard place. “I don’t think the Fed has much of a choice,” she said.

Danielle DiMartino Booth is CEO & Chief Strategist for Quill Intelligence LLC, a research and analytics firm. She spent nine years as an advisor to Richard W. Fisher at the Federal Reserve Bank of Dallas. Danielle left the Fed in 2015 to found Money Strong, LLC, an economic consulting firm and launched a weekly economic newsletter She is the author of Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America. DiMartino Booth 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. Danielle earned her BBA as a College of Business Scholar at the University of Texas at San Antonio. She holds an MBA in Finance and International Business from the University of Texas at Austin and an MS in Journalism from Columbia University.

  federal reserve, inflation