Bloomberg Talks Roubini Macro Associates CEO Nouriel Roubini Talks Fed
May 8, 2025
Nouriel Roubini, CEO of Roubini Macro Associates and renowned for predicting the 2008 financial crisis, joins Bloomberg's Tom Keene and Paul Sweeney for a lively chat. They delve into the recent Fed decisions and why Roubini believes the U.S. economy is poised for growth. The trio discusses the impact of emerging markets on global trade, potential recession risks, and the long-term recovery powered by technological advancements. They also touch on the complex economic policy dynamics in Washington and how advisors influence decisions.
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Emerging Markets and Dollar Weakness
- Emerging markets may benefit from a weakening dollar, often leading to currency appreciation.
- Asian nations hold large foreign reserves, prompting diversification away from US Treasuries, which supports EM currencies.
US Economic Outlook: Short-Term Pain, Long-Term Gain
- Despite trade uncertainties, US economic growth is expected to accelerate medium-term due to technology and AI.
- A near-term recession may occur due to trade headwinds and slowing confidence, but a strong recovery is forecast.
Fed Commitment and Economic Cycles
- Inflation is likely to rise to about 4% by year-end, impacting real disposable income and pushing the economy into a short recession.
- The Fed’s commitment to fighting inflation will eventually enable rate cuts and a subsequent strong recovery.