Monetary Matters with Jack Farley cover image

Monetary Matters with Jack Farley

Tariffs Unlikely To Derail Strong Economy—But Market Risk Has Risen | Prometheus Macro’s Aahan Menon

Mar 14, 2025
Aahan Menon, an expert in systematic macroeconomics at Prometheus Macro, advises on hedge fund strategies. He discusses the limited impact of tariffs on corporate profits and the economy, emphasizing a need for integrating market data with macro fundamentals. The conversation highlights the intriguing relationship between stock momentum and economic trends, suggesting current negative signals could present buying opportunities. Menon also dissects GDP growth predictions and the resilience of consumer spending amid cautionary corporate signals, stressing the complexities of navigating today's market dynamics.
01:14:45

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Quick takeaways

  • The European Central Bank is committed to maintaining the euro's stability through robust interventions amid rising market volatility.
  • Recent stock market declines are primarily driven by geopolitical issues and investor caution rather than fundamental economic weaknesses.

Deep dives

ECB's Commitment to the Euro

The European Central Bank (ECB) is fully prepared to take any necessary actions to uphold the euro's value, ensuring confidence in the currency amidst market fluctuations. This steadfast determination suggests that the ECB believes its measures will be sufficient to stabilize the economy and financial markets, particularly as volatility increases. Market participants can expect the ECB's intervention to be robust enough to mitigate fears associated with economic downturns. Such commitment underscores the central bank’s role in providing a safety net for the euro amidst challenging economic conditions.

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