Bloomberg Surveillance Single Best Idea with Tom Keene: Torsten Slok & Jeffrey Rosenberg
May 6, 2025
Dive into the complexities of the Federal Reserve's upcoming meeting and its battle with inflation and employment. Hear experts discuss the tense dynamics of stagflation and the dilemmas surrounding rate cuts. Feel the Wall Street buzz as it returns, while also appreciating the importance of community engagement and local events. Discover how tools like Canva are reshaping presentations and supporting small businesses in this economically turbulent time.
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Fed Faces Stagflation Dilemma
- We are in stagflation, with inflation expected to rise while economic activity slows.
- The Fed faces a complex choice: hike rates due to inflation or cut due to slower growth.
Fed Prioritizes Growth Over Inflation
- The Fed's dot plot suggests its next move will be a rate cut, prioritizing growth over inflation control.
- This modest inflation rise challenges conventional policy responses under stagflation.
Fed Waits for Hard Data
- Soft survey data typically deteriorates before hard data after economic shocks.
- The Fed waits for hard data before acting, accepting its policy actions will be late.