Bloomberg Surveillance Fed, Markets, & Apple
Feb 21, 2025
Robert Kaplan, Vice Chairman at Goldman Sachs and former President at the Dallas Fed, shares insights on inflation trends, the importance of Federal Reserve independence, and their impact on the US economy. Mark Gurman, Bloomberg News' Chief Correspondent for Apple and Tech, dives into Apple's strategic shift in chip development and the challenges of adapting to global markets and geopolitical tensions. The conversation also touches on the growing significance of Apple’s services revenue, showcasing the company's evolving position in the tech landscape.
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Sticky Inflation
- The Dallas Trim Mean suggests inflation is "sticky" and not improving.
- Supply-side issues may cause price increases, rather than demand-side issues.
Structural Changes and Growth
- Five structural changes are occurring: fiscal spending restructuring, regulatory review, workforce control, energy ecosystem restructuring, and tariffs.
- These changes might slow economic growth but aim to create healthier, private-sector-led growth.
Fed's Response to Structural Changes
- The Federal Reserve is quietly stepping back, letting structural changes take center stage.
- Focusing on the 10-year Treasury rate is more important than the Fed funds rate.
