Bloomberg Surveillance Jackson Hole's Impact on the Economy, Markets React
Aug 20, 2025
David Rosenberg, founder of Rosenberg Research & Associates, shares insights on the shifting dynamics of market optimism, suggesting the bloom may be off the rose. Alicia Levine, head of investment strategy at BNY, discusses how Trump's tariffs have unexpectedly eased deficit worries, impacting economic forecasts. Together, they delve into inflation trends, sluggish growth predictions, and the market's speculative behavior, offering a detailed look at the interplay between economic indicators and investment strategies.
AI Snips
Chapters
Transcript
Episode notes
Tariffs And Services Are Driving Inflation
- David Rosenberg says inflation shows a dichotomy: goods inflation from tariffs and stubborn services inflation.
- He expects a downward trend toward target in 6–12 months but warns it's not immediate.
AI Spending Is Holding Up Growth
- Rosenberg says growth is sputtering and AI-related tech spending is the main underpinning of expansion this year.
- He sees tariff uncertainty and slow Fed cuts as drags that keep the economy weak into next year.
Powell Likely To Temper Rate-Cut Expectations
- Rosenberg expects Powell to be less dovish than markets price and to resist political pressure to cut prematurely.
- He warns Jackson Hole remarks could dial back odds of a September cut and disappoint investors.