Wednesday, June 17, 2015

Former Dallas Fed Insider Speaks Out on CNBC

We can add Danielle DiMartino Booth to the list of former Fed Insiders turned Fed critic. Ms. Booth was an adviser to Dallas Fed chief Richard Fisher. She has now left the Fed and did not waste any time launching into criticism of the Fed's loose monetary policies. In the CNBC interview below, she sounds a lot like Nomi Prins or Jim Rickards. In fact it's hard to miss her statement at the 4 minute mark in the interview that a big problem at the Fed is that they are relying on bad models (something Jim Rickards has been saying).



My added comment:

We are always interested here when those with experience inside the system are willing to talk openly about important issues. In this case, Ms. Booth is now free to discuss issues that would likely be considered confidential if she were still working at the Fed. So her comments and perspective are valuable to those of us on the outside. 

Hopefully, this is will be another signal to those inside the system that a better effort is needed to restore public trust that has been lost. The recent invitation to Nomi Prins to speak at the Fed (blog article here) and a speech on the BIS web site by BOE Governor Mark Carney (blog article here) are encouraging signs that perhaps the message is getting through. It's pretty obvious they are hearing what Jim Rickards has to say if you listen to this interview with Ms. Booth. She lists asset bubbles caused by Fed policy as a concern and says the Fed is too addicted to using models. She even mentions Ludwig Von Mises as one of her heroes (Rickards says if he were alive today he thinks he would be an advocate of the complexity theory that Jim talks about today).

It should be noted that Richard Fisher was a hawk in the minority at the Fed. However, this interview clearly confirms that the Fed is hearing what critics have to say. It also illustrates something else we have mentioned here on the blog. There are good people inside the system working to make things better by challenging the status quo. Ms. Booth clearly states that her analysis (critical of the easy money policies) was presented at the Fed meetings by Richard Fisher.


  1. Wow...... I could not believe my ears when I heard her say she is a disciplee of Von Mises.Isn't that an oxymoron when you say Federal Reserve?

  2. I have had some interesting input/contact from some working inside the system as a result of doing this blog. There are good people there like in any organization. It's why it is important to keep an open mind and not prejudge people (inside the system or critics outside the system).