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.
AI Snips
Chapters
Transcript
Episode notes
Inflation Progress
- Inflation has fallen from 6% to 2.8% (core PCE).
- Wages are slowing, and real-time shelter prices are decreasing, pointing to more benign inflation.
Fed's Approach to Rate Cuts
- The Fed likely won't accelerate rate cuts due to their need for flexibility.
- Focusing on individual data points instead of trends creates volatility due to data's inherent volatility.
Fed's Dual Mandate
- The Fed should focus on both inflation and labor market conditions.
- While cracks are forming in the labor market, it doesn't mean a collapse is imminent.