Bloomberg Daybreak: Asia Edition Daybreak Holiday: Trump versus Powell, ETF Inflows, Antitrust in Focus
Apr 17, 2025
Jennifer Rie, a Senior Litigation Analyst, and Eric Balchunas, a Senior ETF Strategist, dive into some of today's hottest financial topics. They unpack President Trump's criticism of Fed Chair Powell and the potential shifts in Fed leadership. Eric sheds light on ETF inflows and market dynamics, while Jennifer discusses the government's antitrust battles with Meta and the implications for tech giants. They explore the complexities of tariffs, their economic impacts, and the ongoing scrutiny surrounding monopolistic practices in the industry.
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Importance of Fed Independence
- The Fed's independence is critical for controlling inflation and economic stability.
- Political interference, like threats to fire Powell, risks destabilizing monetary policy effectiveness.
Tariffs Impact Inflation and Growth
- Tariffs increase inflation and slow economic growth, impacting the Fed's monetary policy decisions.
- Powell expects tariffs to worsen inflation pressure, limiting the Fed's likelihood to cut rates soon.
Who Bears Tariff Costs?
- The burden of tariffs legally falls on importers but consumption costs may be passed to consumers.
- Demand destruction from high tariffs may limit companies' ability to raise prices further.