Bloomberg Intelligence US PCE Data, Zelenskiy Meeting
Feb 28, 2025
Dr. Ariel Cohen, a Senior Fellow at the Atlantic Council, delves into the significant meeting between Trump and Zelenskiy, discussing its geopolitical ramifications. The dialogue also covers the latest U.S. PCE data and its potential impact on future Federal Reserve policies. The conversation explores the intersection of economic issues and international relations, especially concerning U.S. support for Ukraine. Additionally, the threats posed by inflation and shifts in investment strategies in the current economic landscape are highlighted.
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PCE Inflation and Fed's Focus
- The latest PCE inflation data shows a slight decrease, but core PCE remains above the Fed's 2% target.
- This suggests the Fed will likely hold interest rates steady, shifting focus towards economic growth.
Recessionary Fears vs. Hard Data
- Priya Misra believes current recessionary fears are overblown and based on potentially misleading data.
- She emphasizes the hard data, particularly in the labor market, still shows economic strength, but acknowledges growing downside risks.
Portfolio Management in Uncertain Times
- Given market uncertainty, Priya Misra advises investors to maintain a neutral duration in their portfolios.
- She suggests increasing quality within credit holdings by trimming high-yield and focusing on investment grade.