Bloomberg Surveillance Bloomberg Surveillance TV: May 2, 2025
May 2, 2025
Stephen Miran, Chairman of the White House Council of Economic Advisers, sheds light on the administration's response to the April jobs report, discussing critical economic policies. Jeffrey Rosenberg, a Portfolio Manager at BlackRock, delves into market reactions and economic shocks. Together, they explore the impact of tariff discussions with China on various sectors, the Federal Reserve's interest rate strategies, and ongoing labor market trends. The conversation provides a captivating look at the intersection of politics and economics amidst a dynamic financial landscape.
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Strong Jobs, Yet Economic Risks Loom
- The April jobs report showed strong employment growth, but economic challenges loom ahead due to tariff impacts and potential import disruptions.
- The Federal Reserve is unlikely to cut rates until unemployment rises, maintaining a wait-and-see approach amid current economic momentum.
Tariff Impact Yet to Show
- The recent jobs data precedes the tariff shock, so future reports will better reflect its economic impact.
- Markets have quickly repriced risks, so investors are adopting more defensive portfolio positions amid inflation and growth uncertainties.
Advice for Defensive Investing
- Investors should pursue defensive positioning by emphasizing quality credit and reducing exposure to highly cyclical equities.
- Shortening key rate duration is advised due to inflation uncertainty and the risk of stagflation affecting bond market dynamics.