DiMartino Booth Appears on ‘Making Money with Charles Payne’ To Discuss Fed Rate Hike — Pt 2

Give it up for Danielle Di Martino. [music] >> Danielle Di Martino >> Danielle Di Martino Booth So, let's go and bring back Jim, Gabriella, and and Danielle Di Danielle Di Martino Booth. And Jim, I'm I'm giving you this one. So, Goldman Sachs out with a piece yesterday. We're going to show the audience here the the chart saying, "You don't have to do anything. All of the inflationary pressures have peaked. They're easing off on their own, and the Fed doesn't need to shouldn't does They don't have to do anything here." >> Yes, and then they go and say the Fed's going to raise rates because Warsh is not willing to go against the prediction markets. As we were chatting about before, that's you go back to the Jackson Hole speech, that whole section on the Hall of Mirrors, where where may where the Fed is reacting to the prediction market, and the prediction market is reacting to the Fed and not the objective data. He just threw that portion of the >> So, you're saying even though even though Warsh has a belief system and he's talked about this, every Fed chair has been bullied by the mar stock market. Every single one of them. He came in determined not to be bullied, and you're saying today he was bullied. >> Yes. >> You You agree with that? >> Yeah, he did not fight the markets today. But on the other hand, you know, there there were two individuals on the committee who foresee a rate cut this year. There are four on the committee who foresee a rate cut next year. So, he may have just been dealing with the a good outcome to the family fight. >> Right. >> This might have had less to do with market pricing than what we're looking at. Given there's dissent going into next year. >> Gabriella, this is what I'm thinking, too, along that lines that, "Okay, you know what? As much as it may have pained them to do this, that it's okay to lose a battle to win the war." He's built up a lot of whatever you can call an internal credibility with his fellow committee members. The Fed credibility thing goes out the window and next year, when he wants to do things that may be against Wall Street, that you know, they won't be able to say well he's in Trump's back pocket. >> It was tricky because I think in a way Chair Warsh painted himself into this corner, not the other way around with the market because, you know, a hike had been priced out and then he had his whole speech at Jackson Hole talking tough once again. We were talking about providing actual forward guidance based on what happened with CPI and PCE and then we did get a hotter print and then the market reacted to that. So, it's a bit anyway. We don't think they needed to have hiked, but they did. He addressed that credibility issue and I think clearly looking at the action and the tenure with yields down that was well perceived by the market. >> folks. Here he is. He's been over two to the market. Let's see what happens now. >> [laughter] >> If they like what he's got to say.