Bloomberg Surveillance PCE Reaction and Market Outlook
Sep 26, 2025
Tiffany Wilding, an economist at PIMCO, takes center stage with insights on inflation and labor markets. She discusses managing fixed-income investments in a booming economy and highlights the winners and losers amidst the Fed's potential policy pivots. Wilding shares her take on recent inflation data, emphasizing tech's role in labor adjustments. She also evaluates housing affordability and maintains a neutral interest rate outlook around 3%, all while contemplating economic growth trends amidst evolving challenges.
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AI Investment Is Tangible And Transformative
- AI investment is a real, large-scale infrastructure cycle, not a mirage.
- David Bailin says $400 billion committed and rapid hardware growth will transform economies and create investable opportunities.
Manage Cash Like An Asset Class
- Treat cash as an asset class and actively manage its yield.
- David Bailin recommends deploying retail and family office cash into higher-yielding options instead of earning low returns.
Position Into Intermediate Fixed Income
- Favor intermediate-term bonds (3–7 years) to capture higher total returns.
- Bailin expects a gradual rate-cutting cycle through 2026 and suggests positioning accordingly.