The Federal Reserve could be steering us straight into the next great recession. After decades of monetary and fiscal debacles from quantitative easing to safeguarding big banks that hurt everyday Americans, it seems almost everyone wants the Fed to be taken apart and rebuilt or shipped away, never to have economic sway again. Grave mistakes have been made over the past two decades, many of which will have unfathomable consequences for today’s economy. So, can the Fed do ANYTHING to save us?

Enough with the speculating. We brought former Advisor to The Federal Reserve Bank of Dallas, Danielle DiMartino Booth, to tell us what happens behind closed doors. Danielle was there at the beginning of quantitative easing, fighting back against a program she knew would lead to a weak economy. Now, as Danielle puts it, “everything has come home to roost,” as quick decisions made in the last financial crisis put us in a massive economic bind. This is NOT good news for real estate investors; those buying today could be in serious trouble in years to come.

Throughout today’s episode, Danielle gives us her take on how the Fed could fix itself, current actions Jerome Powell, Chair of the Fed, has put into place to correct the course we’re on, and whether or not a “soft landing” is possible as the American economy heads into a recession. Finally, Danielle gives her advice on what real estate investors should do and why those exiting the market might be smarter than the rest of us.

In This Episode We Cover

Massive mistakes the Fed made during the Global Financial Crisis that we’re paying for today

Quantitative easing explained and why “money printing” is so dangerous to the economy

The “dual mandate” that’s making the Fed’s job almost impossible to achieve

Recession predictions and whether we’ll face a soft landing or hard crash

Why smart real estate investors are hoarding cash and refusing to buy

False job data and why the unemployment rate is about to get even worse

And So Much More!

Links from the Show

Find an Agent

Find a Lender

BiggerPockets Forums

BiggerPockets Agent

BiggerPockets Bootcamps

Join BiggerPockets for FREE

On The Market

Join the Future of Real Estate Investing with Fundrise

Connect with Other Investors in the “On The Market” Forums

Subscribe to The “On The Market” YouTube Channel

Dave's BiggerPockets Profile

Dave's Instagram

Kathy's BiggerPockets Profile

Kathy's Instagram

Book Mentioned in the Show:

Fed Up by Danielle DiMartino Booth

Connect with Danielle:

Danielle's Substack

Danielle's Twitter

Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-121

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.

Learn more about your ad choices. Visit megaphone.fm/adchoices

121: Why the Fed is Steering Us Straight Towards the Next Great Recession w/Danielle DiMartino Booth 54:29 Share

On The Market

Shownotes Transcript

121: Why the Fed is Steering Us Straight Towards the Next Great Recession w/Danielle DiMartino Booth