Bloomberg Businessweek Core Inflation, Income Are Reasons for Fed Caution
Nov 27, 2024
Michael McKee, Bloomberg's International Economics & Policy Correspondent, shares insights on the Fed's cautious approach amidst persistent inflation and economic trends. Jennifer Grancio, head of ETFs at TCW, discusses the growing demand for active fixed income ETFs and the strategic shifts in investment management. Joe Klecha, Chief Nuclear Officer of The Nuclear Company, outlines plans for expanding nuclear power in the U.S. by 2050, emphasizing technology and public-private partnerships in meeting energy needs.
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Economic Growth Fueled by Spending
- Consumer spending drives US economy, with 3.5% growth in Q3 2024.
- Wages are outpacing inflation, allowing continued spending despite rising prices.
Wage-Inflation Dynamic
- Inflation drives wage increases as people seek higher pay to offset rising costs.
- People attribute raises to their merit, while price hikes feel imposed, despite real wage growth.
Black Friday's Declining Importance
- Early holiday shopping and promotions make Black Friday less significant as a single event.
- Spending data from October, November, and December provides a clearer picture of holiday retail trends.