Bloomberg Intelligence PCE Inflation Picks Up Ahead of Tariffs
7 snips
Mar 28, 2025 Nathan Dean, a Senior Policy Analyst at Bloomberg Intelligence, dives into the complexities of tariffs and their looming impact on the economy. He discusses how recent PCE data indicates weaker consumer spending, a worrying sign for inflation. Dean highlights a shift in consumer behavior, particularly a notable reduction in spending on services. Additionally, he touches on political dynamics in Congress regarding budget resolutions, offering insights into how these factors interplay with economic challenges facing Americans.
AI Snips
Chapters
Transcript
Episode notes
Fed's Response to Tariff Uncertainty
- The uncertainty around tariffs makes it difficult for the Fed to plan next steps.
- They are running "what if" scenarios, but clarity is needed on actual tariff policies before proper modeling can occur.
Liberation Day and Tariffs
- "Liberation Day" (April 2nd) is expected to bring a mix of immediate tariffs and announcements of future tariffs.
- This will include reciprocal tariffs and the creation of an "external revenue service."
Anticipation for April 2nd
- Despite some skepticism, there's anticipation of significant tariff announcements on April 2nd.
- President Trump's hype suggests action on autos, pharmaceuticals, or reciprocal tariffs is likely.