Bloomberg Surveillance Dip-Buyers Emerge Following Oracle Woes & Fed Rate Cut
11 snips
Dec 11, 2025 Alexis Crow, Partner and Chief Economist at PwC US, discusses the shift in the U.S. economy from a K-shape to a 'Pac-Man' pattern, where top incomes rise while the bottom 50% stagnates. She emphasizes the role of AI in addressing skill shortages and boosting productivity, albeit with delayed effects. Iain Stealey, International CIO for Fixed Income at JPMorgan, highlights opportunities in UK bonds amid inflation and previews a carry-rich environment in fixed income, while also noting the potential in European peripheral debts.
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Dual Mandate Creates Hard Tradeoffs
- Kaplan argues post-COVID policy must balance inflation and employment because stimulus created excess demand.
- He notes the Fed faces trade-offs and internal division when both mandates matter.
Build Scale To Afford Tech Investments
- Kaplan says companies must build scale to afford technology and CapEx investments.
- He implies firms should pursue M&A or tightening belts to fund AI and productivity investments.
Be Cautious On Lower‑Grade Private Credit
- Kaplan views private credit as a useful complement to banks but warns on sub-investment-grade risk.
- He cautions that lots of money has flowed into riskier private credit without a recent credit cycle.