Kitco News, Released on 5/7/25

The Federal Reserve held rates steady at 4.25%–4.50%, but Chair Jerome Powell admitted he doesn’t know which threat will hit harder — rising inflation or surging unemployment. Danielle DiMartino Booth, CEO of QI Research and former Fed advisor, joins Jeremy Szafron to break down why she believes the Fed is missing clear signs of recession and a credit crunch already hitting Main Street. In this high-impact post-FOMC interview, DiMartino Booth warns that bankruptcies are accelerating, job losses are looming, and the Fed is too reliant on lagging data. She also responds to speculation about the Fed buying Treasuries and unpacks how China’s massive stimulus package may complicate U.S. monetary policy.

00:00 Introduction
02:12 Interview with Danielle DiMartino Booth
02:32 Fed’s Forecasts and Economic Indicators
04:02 Potential Rate Cuts and Economic Risks
05:12 Consumer Impact and Fed’s Credibility
08:12 Bankruptcies and Economic Distress
12:02 China’s Economic Moves and Global Impact
15:05 Final Thoughts and Advice for the Fed
16:28 Conclusion

Danielle DiMartino Booth is Founder & CEO of QI Research, 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.

  economy, Fed, recession