Real Vision: Finance & Investing Global Macro: Tariffs and the Fed Policy ft. Joseph Wang
Feb 11, 2025
In this engaging discussion, Joseph Wang, CIO at Monetary Macro and a former senior Federal Reserve trader, dives into the intricacies of U.S. trade policy and tariffs. He examines how these factors impact the economy, particularly regarding China, and the political motivations behind them. Wang also analyzes the potential for interest rate cuts in 2025, the complexities of inflation management, and how a weakened dollar could affect market stability. His insights on the interplay between monetary policy and political pressures offer a compelling look at future economic trends.
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Fed Policy Disagreements
- The Fed likely faces internal disagreements, impacting their policy decisions.
- Key figures like Chair Powell and Governor Waller lean dovish, favoring lower rates.
The Fed's Balancing Act
- The Fed balances inflation and employment when setting monetary policy.
- They also consider their "stance of policy" relative to the neutral rate.
Unemployment and the Fed
- The Fed considers the unemployment rate's trajectory and its relation to the neutral rate.
- Rising unemployment and other labor market signals suggest a slowing economy.