Monetary Matters with Jack Farley Wait & See | Jack & Max on May Fed Meeting, Shipping Volumes, China Stimulus, and Tariff Newsflow
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May 7, 2025 Max Wiethe, host of Other People’s Money, joins the discussion to unravel key economic trends. They tackle the May Fed meeting and its cautious stance amid tariff uncertainties impacting inflation. The duo delves into shipping volumes and the implications of China’s recent monetary stimulus. With insights on consumer spending trends and the nuances of data analysis, they paint a complex picture of the current economic landscape, emphasizing the interconnectedness of global trade and market shifts.
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Fed's Wait and See Dilemma
- The Federal Reserve is in a wait and see mode due to tariff impacts on inflation and growth.
- This creates tension between controlling inflation and avoiding recession, challenging the dual mandate.
Fed Ignores Soft Data Warnings
- Fed avoids acting on negative soft data due to past false recession signals.
- Hard data like investment and unemployment are preferred indicators over consumer surveys.
Shipping Volumes Decline Due To Tariffs
- Early May saw over 30% drop in shipping volumes at Los Angeles port, likely due to tariffs.
- This decline could indicate early signs of trade disruption but needs more data to confirm.