Here's Why Here's Why Inflation Could Be A Bigger Problem in 2025
Nov 29, 2024
Daniel Moss, a Bloomberg Opinion columnist known for his insights on economic trends, joins host Stephen Carroll to delve into inflation expectations for 2025. They discuss the cautious steps central banks are taking as inflation levels near target rates, and how trade tariffs and a strong dollar may complicate future forecasts. Moss also examines whether recent declines in inflation are merely temporary or signal a new period of sustained inflation, shedding light on the evolving monetary policy landscape.
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The Last Mile of Inflation
- Central banks brought inflation close to target but remain cautious.
- The last stage of reducing inflation, the "last mile," is the hardest.
2022 Inflation Crisis Resolved
- The 2022 inflation crisis is over, with PCE down significantly from above 7%.
- Most developed and emerging markets have tamed inflation, unlike China.
Potential Inflationary Pressures
- Factors like Donald Trump's potential fiscal policies, deregulation, and tariffs could impact inflation.
- These factors could strengthen the dollar, potentially increasing inflation.