Bloomberg Intelligence Softer Than Expected Inflation Points to Muted Tariff Fallout
May 13, 2025
Ira Jersey, Chief US Interest Rate Strategist at Bloomberg Intelligence, analyzes recent U.S. CPI data revealing surprisingly low inflation trends, suggesting fewer pressures from tariffs. Sarah Ponczek, a Financial Advisor at UBS Private Wealth Management, shares her positive outlook on the market, noting optimistic stock movements amid easing trade tensions. They delve into potential Federal Reserve policy shifts and the implications of a recovering stock market, all while keeping an eye on corporate shifts like UnitedHealth's surprising leadership change.
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Muted Inflation and Fed Strategy
- April's CPI showed inflation rising less than forecast, suggesting a muted tariff impact so far.
- The Fed is considering cuts only if inflation remains at or below target and growth weakens significantly.
Investment Strategy Amid Volatility
- Stick to your investment plan and avoid selling stocks at market lows during volatility.
- Maintain liquidity buffers to cover near-term expenses and avoid panic selling.
UnitedHealth's Cost Challenges
- UnitedHealth's struggles come from accelerated medical costs and reimbursement challenges.
- The company may need longer to normalize margins or might exit underperforming markets.