Bloomberg Surveillance Bloomberg Surveillance TV: June 17, 2025
Jun 17, 2025
Krishna Guha, Vice Chairman at Evercore ISI, shares expert insights on the upcoming Fed meeting and navigates the complexities of the US economy, focusing on the need for stable inflation expectations. Meanwhile, Reza Pahlavi, Son of the Shah of Iran, discusses the escalating conflict between Israel and Iran, exploring potential avenues for regime change and the aspirations of the Iranian people for democracy. Their conversations intertwine pressing economic and geopolitical themes, making for a compelling dialogue.
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Fed's Rate Pause and Watchful Stance
- The Fed is expected to hold rates steady and focus on updated economic forecasts this June meeting.
- Market focus is on how many rate cuts the Fed predicts this year, with July likely still a pause.
Labor Market Guides Fed Policy
- The Fed's decision to cut rates depends mainly on labor market strength despite inflation from tariffs.
- If labor weakens moderately, the Fed might cut to prevent further deterioration even with higher inflation.
Fed Lets Market Yield Signal Economy
- The Fed doesn't control short- and medium-term market rates but monitors them as indicators of economic outlook.
- Current market yields reflect recession risks, and the Fed lets markets adjust as automatic economic stabilizers.