Dear Hedgeye Nation,

We are excited to bring you yet another heavy-hitting macro-dose of financial insight with our newest Real Conversation on HedgeyeTV. Hedgeye CEO Keith McCullough sits down with former Fed advisor and Chief Strategist at Quill Intelligence, Danielle DiMartino Booth.

Get your pen ready as they discuss important market implications in the wake of the COVID-19, particularly the extraordinary fiscal and monetary mess D.C. bureaucrats and policy wonks have created.

Please enjoy the entire hour-long interview below. We’ve also transcribed key excerpts from the eye-opening conversation between Danielle and Keith for your convenience.

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McCullough: What is it about Powell in particular that just doesn't want to engage in the public debate, but is doing what you have pointed out behind the scenes?

Booth: Some part of me is torn, because we know that before Powell pivoted in January 2019, that the lights were on and somebody was home.

We know that the vestiges of common sense are somewhere inside of that head. You have to ask yourself, has he already been informed by the powers that be, that he just has to hold on for eight months and then he's out the door? 

 People need to understand that he is a Republican, and having monetary policy facilitate socialism has probably not on his "to-do" list. He's a conservative, so I think he is desperately trying to avoid the next endgame.

I think the financial stability report was published when it was, and that people were allowed to make rumblings about financial instability, and Lael Brainard is his presumptive.

If he is going to be succeeded by somebody sitting on that board, it will be Lael Brainard. She authored the Financial Stability report and said significant declines in risky asset prices.

It feels like the Fed wants to engineer a soft correction in the stock market. That's what it feels like.

ABOUT Danielle DiMartino Booth

Following DiMartino Booth's nine year-tenure as Advisor to Federal Reserve Bank of Dallas President Richard W. Fisher, where she served throughout the financial crisis until his retirement in March 2015, she began her work as a financial commentator. DiMartino Booth is now the CEO & Chief Strategist for Quill Intelligence LLC, a research and analytics firm which produces The Daily Feather and the Weekly Quill.

Her work at the Fed focused on financial stability and the efficacy of unconventional monetary policy, in which she drew upon in writing  FED UP: An Insider’s Take on Why the Federal Reserve is Bad for America.