Bloomberg Surveillance Markets Drive Higher Amid Record Close
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Sep 23, 2025 Economists weigh in on the impact of potential rapid US interest rate cuts, igniting interest in gold as a safe asset amid geopolitical tensions. Analysts discuss equity risks and investor reactions as earnings season approaches, considering a narrow market leadership. The bond market faces complacency and fiscal concerns, with insights into high-yield valuations and the effects of new credit activities. Lastly, the role of AI and sustainability in finance is highlighted, addressing the evolving skills demanded from professionals in the industry.
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Real Growth Despite Inflation Tension
- Steve Ricchiuto says US real growth is healthy despite inflationary pressures.
- He highlights productivity and a split economy as reasons growth persists while inflation remains elevated.
Fed Cuts Are Insurance, Not A Fast Pivot
- Ricchiuto expects a near-term sequence of Fed cuts but says later moves will be data dependent.
- He frames the initial cut as an "insurance" move tied to risks across the Fed's dual mandate.
Dots Anchor Market Expectations
- Ricchiuto notes the Fed won't quickly change its long-run rate target and sees neutral around 3%.
- He argues that anchored dot plots reduce potential market volatility from policy surprises.