Fed’s Mester Wants Few More Months of Good Inflation Before Cuts
Jun 14, 2024
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Bloomberg's Michael McKee discusses Fed's Mester wanting good inflation data before rate cuts. Ikea works to retain workers while Cava chain's value soars. Spotify unveils new premium music service. Clear Harbor Asset CEO on navigating market uncertainty.
Fed's Mester emphasizes need for sustained good inflation data before considering interest rate cuts.
Ikea implements strategies to improve employee retention and workplace satisfaction.
Cava restaurant chain's impressive valuation highlights success in the competitive food industry market.
Deep dives
Fixed asset entices clients with a premium plan
Spotify launches a new premium plan offering higher fidelity audio and enhanced playlist tools. The focus on personalized content and user experience aims to attract users willing to pay extra for a high-quality music streaming service.
Yield curve inversion poses recession concerns
Despite a prolonged yield curve inversion for over two years, no recession has followed, defying historical averages. The current economic indicators suggest a 12.5% chance of recession in the next 12 months, impacted by shifting demand patterns, high unemployment, and potential consumer stress.
Global market anxiety over France's political crisis following parliamentary elections underscores the impact of geopolitics on trade. Uncertainty in Europe, the US, and Japan, accompanied by a rise in populism, can disrupt fiscal stability and influence long-term market trends.
Bond market outlook amidst rate cut expectations
Expectations of potential rate cuts by the Fed, convergence between market and Fed projections, and favorable inflation break-even spreads indicate a positive outlook for the bond market. With 10-year treasury yields at 4.20%, fixed income investors may find opportunities in extended duration assets.
Consumer stress indicators and GDP trends
Signs of consumer stress, like rising credit card interest rates, mortgage challenges, and reduced savings rates, indicate potential GDP deceleration. While not necessarily predicting a recession, these factors suggest that the consumer sector is facing incremental pressure.
Market trends influenced by uncertain political landscape
Global market trends are swayed by geopolitical uncertainties like the political crises in France, Germany, and the UK. The rise of populism and fiscal uncertainties in public debt management underscore the need for monitoring geopolitical events' impact on long-term market stability.
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg News International Economics & Policy Correspondent Michael McKee talks about his interview with Cleveland Fed President Loretta Mester who called the latest data showing softer inflation “welcome news,” and said she would like to see a few more months of good data before considering lower interest rates. Bloomberg News Senior Management and Workplace Reporter Matthew Boyle explains what Swedish retailer Ikea is doing to retain workers. Bloomberg News Equities Reporter Bailey Lipschultz discusses how restaurant chain Cava is worth $33 million per restaurant after a blistering debut. Bloomberg News Music and Audio Reporter Ashley Carman provides the details of Spotify's plan to unveil a new premium music service. And we Drive to the Close with Aaron Kennon, CEO at Clear Harbor Asset Management. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.
