The Julia La Roche Show, Released on 4/30/26 (Recorded on 4/29/26)

In this episode, Danielle DiMartino Booth, CEO of QI Research and former Fed insider, explains why she’s “less fed up” despite disagreeing with Fed policy – praising Jerome Powell’s decision to stay on as governor to protect Fed independence, drawing parallels to Marriner Eccles’ 1948 stand against President Truman. Danielle calls Powell’s move “patriotic” while warning we’re “flirting with a liquidity crisis” as non-banks have become “too big to fail.” She discusses the challenges Kevin Warsh will face as incoming chair, argues the Fed has failed its employment mandate, and explains how the economy cannot withstand persistently high oil prices and interest rates simultaneously.

0:00 Introduction – Fed day with Danielle DiMartino Booth
0:32 Powell’s last time at the podium – Takeaways
1:48 The Eccles parallel – Fed independence fight in 1948
2:39 Why Danielle is “less fed up” today
2:57 The Powell move – Staying on as governor
4:20 Risk of being perceived as shadow Fed chair?
5:39 Triple hawkish dissent
6:16 Unprecedented dissent levels – Early resistance signs?
7:57 Powell’s legacy and how it changed today
9:22 The Eccles legacy – Established as governor, not chair
10:27 Powell’s move was “patriotic” – Protecting Fed independence
11:27 What is your read on Kevin Warsh?
12:48 Liquidity crises take precedence – The Mike Tyson test
13:40 0% chance of rate cut – Should they have cut?
14:47 Fed has failed its employment mandate
16:48 Oil prices and disinflationary demand destruction
17:17 Bankruptcies accelerating, layoffs increasing
18:01 Home prices falling – Thinking about inflation wrong
19:16 The valley of death at $100k income level
19:32 Higher for longer means more pain
20:34 How does building consensus at the Fed work?
22:04 Flirting with a liquidity crisis – How big is the risk?
22:38 Pummeling the housing market
23:26 More sellers than buyers – Biggest disconnect ever
24:09 Investment boom or panic stockpiling ahead of tariffs?
25:27 Economy can’t withstand high oil and high rates
28:07 Base case for rest of 2026 – Fed cuts
30:43 If you could advise Kevin Warsh, what would you say?
32:17 Bloomberg chat – hot takes with institutional investors
33:34 What’s keeping you up at night and making you hopeful?
35:37 Non-banks now too big to fail
37:06 Systemic risk from non-banking system
37:25 Mother’s Day tribute – Legacy and three graduating kids
38:03 Closing thoughts

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, powell