Bitcoin News

Story: Fed Rate Strategy Triggers Historic Economic Mistake Warnings

By Dan Saada

1 / 14

GDP Data Shows Trouble. Recent numbers show GDP growth crashed to just 0.8% in the fourth quarter. That's down from 2.

2 / 14

Markets React to Fed Stubbornness. Financial markets show serious volatility as investors worry about sustained high rates.

3 / 14

Fed officials keep rates high. QI Research CEO Danielle DiMartino Booth says the U.S. economy's heading toward recession and calls the central bank's decision a potentially…

4 / 14

DiMartino Booth warns the Federal Reserve's stubborn rate strategy will make economic troubles worse.

5 / 14

The former Fed advisor argues current policy could wreck the economy. DiMartino Booth worked inside the central bank and knows how decisions get made.

6 / 14

Recent numbers show GDP growth crashed to just 0.8% in the fourth quarter. That's down from 2.1% the previous quarter, according to Bureau of Economic Analysis data.

7 / 14

But Fed officials keep pushing their rate strategy anyway.

8 / 14

Some experts think high rates are still needed for inflation control. Others, like DiMartino Booth, warn this approach will cause economic contraction that'll hurt millions of…

9 / 14

Financial markets show serious volatility as investors worry about sustained high rates. The S&P 500 keeps swinging wildly based on any Fed comments or economic data releases.

10 / 14

Consumer confidence crashed to 58.7 in March from 62.3 in February, per University of Michigan data. People are scared about losing jobs and can't afford big purchases anymore.

11 / 14

Companies are starting to announce layoffs. Tech firms cut thousands of jobs last month, and manufacturing plants are reducing shifts.

12 / 14

The next Federal Open Market Committee meeting happens April 26. Investors and economists want to see if recent bad economic data will finally make Powell's team change course.

13 / 14

DiMartino Booth keeps pushing for immediate action. She thinks waiting longer will make the eventual economic crash much more severe.

14 / 14

Upcoming GDP numbers will probably influence the Fed's thinking. Without rate adjustments soon, the U.S. economy faces much bigger problems ahead.

The Currency Analytics

Want the full story?