Guest
Danielle DiMartino Booth
Danielle DiMartino Booth: The Fed's First Rate Hike in Three Years and Where the Economy is Breaking
- Federal Reserve ended its longest pause since 2008 with a rate hike; Kevin Warsh signaled possible follow-through hikes if energy prices drive broader inflation. - Small business failures are accelerating, with 200+ companies closing monthly for five consecutive months and bankruptcies up 64% year-over-year. - Homeowners are withdrawing equity at higher mortgage rates, and delinquencies are rising across multiple consumer segments including Uber drivers. - Nearly 100% of recent GDP growth is attributable to the AI trade; peak AI could pose significant economic risk if the sector cools. - U.S. national debt crossed $40 trillion with $250 billion added quarterly; government cannot meaningfully slow deficit spending or debt rollover. - Political calendar (midterm elections in six days) makes October rate hikes politically unlikely, but December hikes are priced into markets.