{"id":32536,"date":"2018-03-19T15:27:06","date_gmt":"2018-03-19T20:27:06","guid":{"rendered":"http:\/\/olduvai.ca\/?p=32536"},"modified":"2018-03-19T15:27:44","modified_gmt":"2018-03-19T20:27:44","slug":"dimartino-booth-it-wont-take-much-more-for-the-fed-to-break-the-markets","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=32536","title":{"rendered":"DiMartino Booth: It Won&#8217;t Take Much More For The Fed To Break The Markets"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><span class=\"field field--name-title field--type-string field--label-hidden\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-03-19\/dimartino-booth-it-wont-take-much-more-fed-break-markets\">DiMartino Booth: It Won&#8217;t Take Much More For The Fed To Break The Markets<\/a><\/span><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\">\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p><a href=\"https:\/\/www.financialsense.com\/danielle-dimartino-booth-problems-fed-more-volatility-markets\"><em>Via Financial Sense,<\/em><\/a><\/p>\n<p>The following is a summary of our recent FS Insider\u00a0<a href=\"http:\/\/www.financialsense.com\/danielle-dimartino-booth-problems-fed-more-volatility-markets\">podcast<\/a>, \u201cDanielle DiMartino Booth: Problems at the Fed, More Volatility for the Markets.\u201d<\/p>\n<p><em>Danielle DiMartino Booth, founder of\u00a0<a href=\"http:\/\/dimartinobooth.com\/\">Money Strong<\/a>\u00a0and\u00a0<a href=\"http:\/\/www.amazon.com\/Fed-Up-Insiders-Willful-Ignorance\/dp\/0735211655\">author of<\/a>\u00a0Fed Up: An Insider\u2019s\u00a0Take on Why the Federal Reserve Is Bad for America, warns that the US is more highly levered today than it was in 2008 and it won\u2019t be long before rate hikes start to impact the economy.<\/em><\/p>\n<p>Though our own Fed funds risk neutral index (see below) shows Fed monetary policy as still relatively loose and not yet a threat, a combination of slowing economic growth and further rate hikes will eventually usher us into the next downturn.<\/p>\n<div class=\"max-width-video-wrapper\">\n<div class=\"fluid-width-video-wrapper\"><iframe loading=\"lazy\" id=\"fitvid410236\" src=\"https:\/\/www.youtube.com\/embed\/UeKDLFts9WE\" width=\"300\" height=\"150\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/div>\n<\/div>\n<p>Here\u2019s\u00a0what Danielle told Financial Sense Newshour\u2026<\/p>\n<p><u><strong>FISCAL, MONETARY POLICY IN CONFLICT<\/strong><\/u><\/p>\n<p>We just had a huge fiscal stimulus with the recent tax cut, but monetary policy is going in the opposite direction.<\/p>\n<p>Eventually, she warned, <strong><em>we\u2019re going to have one of those moments where the Fed overshoots and they\u2019ve moved too far, too fast.<\/em><\/strong><\/p>\n<p>Though Danielle admits we don\u2019t quite know when that point is yet, <strong>Fed monetary policy should now be seen as a headwind with the \u201cfinal hike that breaks the market\u201d much lower than in the past.<\/strong><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/saupload_fed-funds-risk-neutral_thumb1.png?itok=Q-icSlGr\" \/><\/p>\n<p><em>Source: Bloomberg,\u00a0<a href=\"https:\/\/www.puplava.com\/contactus.html\">Financial Sense Wealth Management<\/a><\/em><\/p>\n<p><u><strong>DEBT A LARGE CONCERN GOING FORWARD<\/strong><\/u><\/p>\n<p>We\u2019re on track for a trillion dollar deficit in 2019, at the same time China and others are buying fewer Treasuries.<\/p>\n<p><strong>It will be interesting to see if we hit 3 percent on the 10-year, as it might serve as a mental catalyst for markets,<\/strong> she said.<\/p>\n<p>Danielle sees defaults heading higher, and thinks it\u2019s\u00a0not going to take too much more in rate hikes before it impacts the economy.<\/p>\n<p><u><strong>WE NEED A RETURN TO NORMAL MARKETS<\/strong><\/u><\/p>\n<p><strong>We essentially have a lost decade behind us, <\/strong>Danielle said, and<strong> if the Fed pushes the economy into recession, expect more QE and debt.<\/strong><\/p>\n<p>Quantitative easing is problematic because it\u2019s\u00a0habit forming, she stated. She\u2019s\u00a0hoping the new Fed chair, Jerome Powell, will stop the next round of QE in its tracks and allow the market to go back to being a price discovery mechanism.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>DiMartino Booth: It Won&#8217;t Take Much More For The Fed To Break The Markets Via Financial Sense, The following is a summary of our recent FS Insider\u00a0podcast, \u201cDanielle DiMartino Booth: Problems at the Fed, More Volatility for the Markets.\u201d Danielle DiMartino Booth, founder of\u00a0Money Strong\u00a0and\u00a0author of\u00a0Fed Up: An Insider\u2019s\u00a0Take on Why the Federal Reserve Is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[13492,303,1849,19348,431,534,3650,4318],"class_list":["post-32536","post","type-post","status-publish","format-standard","hentry","category-economics","tag-danielle-dimartino-booth","tag-fed","tag-financial-markets","tag-financial-sense","tag-interest-rates","tag-monetary-policy","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=32536"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32536\/revisions"}],"predecessor-version":[{"id":32537,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/32536\/revisions\/32537"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=32536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=32536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=32536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}