Maggie Lake Talking Markets Episode 62: Is The Fed Falling Behind? With Brent Donnelly.
9 snips
Jun 11, 2025 Brent Donnelly, President of Spectra Markets, shares his insights on whether the Fed is lagging behind as inflation cools. He explores the potential shifts in interest rates and their impact on the economy. The conversation dives into currency risk for investors, particularly in emerging markets, and discusses the outlook for global currencies compared to the USD. Brent highlights the trend toward increased central planning due to rising debt and suggests strategies for navigating international investments amidst fluctuating currency values.
AI Snips
Chapters
Transcript
Episode notes
Fed's Deliberate Lag Strategy
- The Fed is intentionally staying behind the curve due to growth, employment, and inflation uncertainties.
- They plan to wait until the last second and then likely make significant moves to manage inflation carefully.
US Deficits and Bond Market Dynamics
- The US government's deficits continue to worsen despite symbolic plans to reduce them.
- Bond yields fluctuate amid conflicting pressures from deficit fears and disinflationary signals with the Fed on hold.
Deficits Support Asset Prices
- Federal deficit spending effectively pumps money into financial markets, supporting asset prices.
- Large deficits with moderate growth and inflation make it difficult for stocks to decline.