Bloomberg Daybreak: Asia Edition US Inflation In Line With Forecasts, Fed Rate Cut Bets Solidified
9 snips
Dec 12, 2024 Robert Schein, Chief Investment Officer at Blanke Schein Wealth Management, shares insights on U.S. inflation trends and the market outlook. He discusses the implications of the latest Consumer Price Index report on Federal Reserve interest rate decisions. David Mann, Chief Economist for APAC at the Mastercard Economics Institute, analyzes China's economic stimulus efforts, highlighting shifts towards domestic demand to boost consumer spending. The conversation also delves into investment diversification in the Asia-Pacific region amid evolving economic conditions.
AI Snips
Chapters
Transcript
Episode notes
Inflation and Market Impact
- The CPI report suggests the Fed will likely cut rates by 25 basis points.
- A key concern is a potential inflation resurgence in 2025, impacting market rally.
Market Reaction to CPI
- The market reacted positively to the CPI report, despite a slight uptick in inflation.
- The underlying inflationary trend is decreasing, but a resurgence in 2025 remains a concern.
Investment Strategy for 2025
- Maintain a defensive posture with cash equivalents due to market uncertainties in 2025.
- Anticipate policy changes from the Federal Reserve and Washington, which could cause volatility.