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Bloomberg Surveillance

Wall Street Relief After Inflation Report

Feb 29, 2024
The podcast discusses the Wall Street relief following the inflation report, featuring insights from experts on interest rates, PCE, market trends, and newspaper headlines. Topics include analysis of economic indicators, GDP, inflation dynamics, market risks, financial services, COVID effects, and reflections on a classic movie.
33:45

Podcast summary created with Snipd AI

Quick takeaways

  • Bond market reacts to PCE deflator numbers, resulting in a rally in two-year yields.
  • Discussion on potential interest rate cuts based on stable core PCE deflator rates and easing policy narrative.

Deep dives

Economic Insights and Real Yield Analysis

Economic experts discuss the latest data indicating a slight weakness in the market, with a 10-year real yield at 1.97%, more accommodative to 1.95%. The impact of the PCE deflator and core deflator numbers are analyzed, leading to a bond market reaction involving a rally in two-year yields. The Federal Reserve's stance on interest rates is scrutinized based on inflation and economic performance.

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