Bloomberg Surveillance Bloomberg Surveillance TV: August 18th, 2025
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Aug 18, 2025 
Claudia Sahm, Chief Economist at New Century Advisors, shares insights on market and labor trends ahead of Jay Powell's speech. Gennadiy Goldberg, Head of US Rates Strategy at TD Securities, discusses the timeline for the Fed's rate easing cycle and its potential impacts. Kelly Grieco, Senior Fellow at the Stimson Center, analyzes the implications of the Trump-Putin summit on the ongoing war in Ukraine. This conversation explores pivotal economic decisions and geopolitical strategies shaping the future.
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Fed Faces Dual-Mandate Conflict
- The Fed faces a genuine conflict between its inflation and employment mandates that complicates policy decisions.
- Powell should focus on explaining the trade-offs and process rather than precise timing for rate moves.
Framework Tweaks Won't Drop 2% Goal
- The framework review will tweak how the Fed weighs employment versus inflation without abandoning the 2% target.
- Recent data still place inflation as the primary Fed concern, implying restrictive policy remains likely until clear progress emerges.
Framework Reflects Post-Pandemic Realities
- Changes in the framework reflect new post-pandemic challenges, not a decision to deprioritize the labor market.
- The Fed will aim to balance supply-side labor changes with inflation risks when updating guidance.