Jim Bullard, Mark Zandi, and Julia Coronado discuss CPI reactions, Fed policies, and economic projections. Topics include interest rates, inflation, rate cut speculations, and green initiatives in Europe. Insights on US consumers, GDP numbers, and energy efficiency policies are highlighted.
Jim Bullard discusses the need for Fed to stay higher for longer post-pandemic, advocating for inflation reduction towards 2%.
European focus on green initiatives contrasts with rejection in elections, highlighting the importance of energy efficiency for competitiveness.
Deep dives
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Insights from James Bullard on Economic Regimes
James Bullard discusses a shift in economic regimes to a higher nominal interest rate, higher inflation environment post-pandemic, contrasting it with the low interest rate regime of 2009-2019. He advocates for a new policy approach aiming for a gentle reduction in inflation towards 2%.
Expectations Regarding Federal Reserve Rate Cuts
There is anticipation of Federal Reserve rate cuts with remarks suggesting that interest rates may be reduced in September. Views on the pace of reductions and the impact on the labor market are discussed in light of inflation data and policy adjustments.
Focus on Productivity and Energy Efficiency in Europe
In Europe, there is a focus on energy efficiency and resource optimization to enhance competitiveness and reduce waste in the energy sector. Initiatives emphasize economic benefits and environmental sustainability, positioning efficiency as a priority for business and policy considerations.
Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene and Paul SweeneyJune 13th, 2024 Featuring:
Jim Bullard, Dean of Krannert School of Management at Purdue University and former St. Louis Fed President, gives his CPI reaction and discusses whether he thinks the Fed must remain higher for longer
Mark Zandi, Chief Economist at Moody's Analytics, reacts to CPI
Julia Coronado, founder at MacroPolicy Perspectives, and Constance Hunter, Senior Advisor at MacroPolicy Perspectives, join for an extended discussion on the Fed and CPI
Jonathan Maxwell, CEO at Sustainable Development Capital, draws on the contrast of rejecting of green politics and economics in European elections as he continues to see inflows of his green fund in Europe