Bloomberg Daybreak: US Edition Daybreak Weekend: Bank Earnings, UK Asset Slump, Nippon Steel
Jan 11, 2025
Edward Harrison, author of Bloomberg's Everything Risk Newsletter, provides insights on Fed policy and the unfolding U.S. economic landscape. He discusses inflation metrics and upcoming bank earnings with a focus on regulatory changes. Danny Lee, a Bloomberg News reporter, dives into the Chinese EV market, spotlighting BYD's rise and the challenges faced by foreign automakers. They also explore the implications of the Biden administration's decision against Nippon Steel's acquisition, affecting U.S.-Japan relations.
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Fed Tolerance for Inflation
- The Fed is closely watching inflation and might tolerate current levels if they don't rise further.
- They could even cut rates if inflation stays at current levels or slightly below.
Inflation Concerns
- Inflation is currently a significant concern, stalling above the Fed's 2% target.
- The market expects CPI data to show inflation around 3%, potentially even higher.
Fed Focus
- The Federal Reserve (Fed) is primarily focused on inflation and less worried about the job market.
- They are in a holding pattern regarding interest rates and won't cut them further unless inflation significantly decreases.