Bloomberg Surveillance Bloomberg Surveillance TV: June 9, 2025
Jun 9, 2025
Francisco Blanch, Head of Global Commodities at Bank of America, shares insights on the global outlook for commodities and energy prices, highlighting emerging trends in the market. Elizabeth Economy, Senior Fellow at the Hoover Institution, delves into the intricacies of US-China trade negotiations, addressing strategic decoupling and its economic implications. Their discussions reveal the delicate balance of international relations and market forces, making for an engaging exploration of current global economic dynamics.
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Fed Delays Rate Cuts
- The Fed delays rate cuts due to labor market resilience and requires clear unemployment rises before acting.
- This postponement stems from cautious inflation concerns despite signs of economic slowdown.
Fed's Dilemma: Growth Vs. Yields
- The Fed faces a dilemma with weaker growth yet rising long-term Treasury yields.
- Rate cuts are necessary to lower mortgage rates and revive the contracting housing market.
Fed Inflation Expectations Debate
- Inflation expectations vary by measure, complicating Fed decisions.
- The economy now shows cooling demand and falling house prices, reducing inflation risk.