Bloomberg Daybreak: Asia Edition US CPI Print Fuels Fed Rate Cut Bets
12 snips
Aug 13, 2025 Charles Lieberman, Co-Founder of Advisors Capital Management, discusses how recent US inflation data sparked optimism for potential Fed rate cuts. He notes the easing of trade-related price pressures, which has positively influenced market sentiment. Meanwhile, Peter Chung, Head of Research at Presto in Hong Kong, delves into the cryptocurrency landscape, highlighting Bitcoin's rise due to institutional demand. He also explores a new executive order that allows digital assets in retirement plans, reshaping investment strategies for everyday investors.
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Tariffs Not Yet Feeding Broad Inflation
- The CPI print was a relief because tariffs did not push goods inflation sharply into core CPI.
- Markets rallied on the view that the Fed now has room to consider rate cuts without rekindling broad price pressures.
Watch Upcoming Data Before Expecting Big Cuts
- The CPI outcome could free the Fed to cut by 25bps and possibly 50bps depending on upcoming data.
- Monitor labor and upcoming macro revisions closely to see if the Fed feels justified in larger easing.
Margins Held Up Despite Tariffs
- Profit margins held up in Q2 despite tariffs, so immediate passthrough to consumers wasn't clear.
- Firms may have absorbed some tariff costs or overseas producers took the hit, muting margin pressure so far.