Bloomberg Surveillance Bloomberg Surveillance TV: August 25th, 2025
Aug 25, 2025
Liz Thomas, Head of Investment Strategy at SoFi, discusses the equity rally paired with the Fed's potential easing of monetary policy. Steve Ricchiuto, Chief US Economist at Mizuho, analyzes Jay Powell's Jackson Hole speech and its implications for US rate cuts. Robert Tipp, Chief Investment Strategist at PGIM Fixed Income, talks about the bond market's reaction to possible Fed easing and how the 10-year yield could respond amidst inflation concerns. This dynamic trio delves into the Federal Reserve's balancing act between inflation and employment.
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Fed Will Shift Focus Back To Inflation
- Liz Thomas says the Fed sees labor cooling but still worries about inflation risks from tariffs.
- She expects focus to shift back to inflation over the next few meetings as tariff effects show in consumer data.
Market Repriced A September Cut After Jackson Hole
- Liz Thomas says Powell's remarks repriced markets into a high probability of a September cut and revived the risk-on trade.
- She warns the jobs report will determine whether that cut is truly 'baked in' or needs reassessment.
Watch CPI/PCE For Tariff Pass-Through
- Liz Thomas advises markets to watch CPI and PCE over coming months to see if tariff effects are one-time or persistent.
- She recommends caution because pass-through from PPI to consumer prices can take four to six months.