Bloomberg Surveillance The Latest on the Fed and Gold
7 snips
Oct 8, 2025 
Richard Clarida, former Vice Chair of the Federal Reserve and economic advisor at PIMCO, delves into the current U.S. economy, discussing the implications of recent gold surges and the Fed's challenges with labor market risks versus inflation. Meanwhile, Suzy Welch, NYU Stern professor and author, explores the generational values of Gen Z in the workforce, highlighting their focus on self-care and authenticity versus traditional employer priorities, and debating whether companies must adapt or if Gen Z should alter their expectations.
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Forward-Looking Policy Raises The Stakes
- Clarida says monetary policy had been treated as a black box and a forward-looking rule improved understanding of Fed actions.
- He warns that inflation remaining above target raises stakes for the Fed at levels not seen since Volcker.
Fed Faces A High-Stakes Tradeoff
- Clarida highlights uncertainty about key variables like the natural rate and output gap that complicate rate decisions.
- He frames the Fed's dilemma: cutting risks higher inflation; not cutting risks rising unemployment.
AI Spurs Old-Economy Capital Intensity
- Clarida notes AI drives a surge in 'old economy' capital spending on servers, power, and data centers.
- He says GDP looks weaker when tech investment is stripped out, making AI-driven CapEx the growth engine.
