Bloomberg Daybreak: Europe Edition
Daybreak Holiday: Inflation Pressure, Markets, Retail
Dec 25, 2024
Tom Porcelli, Chief U.S. Economist at PGIM Fixed Income, shares insights on the Fed's balancing act with inflation and interest rates. Lori Calvasina, Head of US Equity Strategy at RBC Capital Markets, and Cameron Dawson, Chief Investment Officer at NewEdge Wealth, delve into stock market predictions for 2025, weighing growth versus value stocks. They also explore holiday retail trends amidst economic challenges, revealing consumer shifts toward experiences and highlighting successful retailer strategies.
37:50
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Quick takeaways
- The Federal Reserve's focus on stabilizing inflation, despite rising costs and mixed economic signals, sets the stage for 2025 market dynamics.
- Retail analysts highlight a shift towards experiential spending, indicating that traditional goods may see limited growth during the holiday season.
Deep dives
Federal Reserve's Focus on Inflation
The Federal Reserve's recent shift towards prioritizing inflation over labor market conditions is a significant theme. Fed Chair Jay Powell acknowledged that inflation has underperformed expectations, with core PCE declining from nearly 6% to around 2.8%. The discussion emphasizes the need for a comprehensive understanding of inflation, particularly by excluding factors like shelter, which complicate calculations. As such, core inflation metrics show signs of stability, while wage growth and other economic indicators suggest that inflation may not be as persistent as previously feared.
