Bloomberg Surveillance Markets Rally as Powell and Policy Uncertainty Loom
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Jun 30, 2025 Jeffrey Rosenberg, a Portfolio Manager at BlackRock, shares his insights on the evolving bond market, highlighting shifts in interest rates and warnings for investors. Meanwhile, Ebrahim Rahbari, Head of Rates Strategy at Absolute Strategy Research, discusses the outlook for global interest rates and inflation amidst uncertainty. Their conversation offers a deep dive into how economic indicators shape financial strategies, providing listeners with essential context as they navigate complex market dynamics.
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Fed Should Wait Before Cutting Rates
- The Fed should maintain a wait-and-see approach regarding rate cuts amid policy uncertainty and slowdowns.
- Focus should be on upcoming payroll data to guide decisions about future monetary policy pivots.
Tale of Two US Balance Sheets
- US private sector balance sheets are strong, allowing public sector leeway with fiscal spending despite mounting concerns.
- A major tension between these balance sheets is likely in the next few years, especially amid recent Congressional actions.
Fed Likely to Make Moderate Rate Cuts
- The Fed is expected to cut rates moderately due to economic slowdown signs, despite a strong stock market rebound.
- Starting at a restrictive level above neutral makes cautious, incremental easing appropriate.