Bloomberg Daybreak: Asia Edition Daybreak Weekend: Fed Meeting, Europe Central Bank Decisions, Takaichi-Trump Meeting
8 snips
Mar 13, 2026 
Alistair Gale, Japan reporter with expertise in politics and security, Jana Randall, Western Europe economy lead, and Anna Wong, Bloomberg Economics chief U.S. economist, dig into central bank decisions, Fed policy and inflation dynamics, eurozone and UK risks amid energy shocks, and Japan’s Washington agenda including defense, trade and economic priorities. Short, timely conversations on policy and geopolitical cross-currents.
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Oil Spike Will Raise Headline But Lower Core Inflation
- Anna Wong expects the Fed to sharply revise up its PCE inflation forecast to about 3% because oil likely averages ~$80 this year.
- She argues an oil shock raises headline inflation but cuts core PCE via an income shock that reduces spending on services, supporting eventual easing.
Watch Labor Market Before Betting On Fed Hikes
- Anna Wong advises watching the labor market as the bigger Fed concern; she expects unemployment to climb into summer, shifting the Fed's focus from headline inflation.
- She recommends expecting rate cuts later this year once labor deterioration is clear and the oil shock fades by June.
Energy Shock Raises Risk Of Second Round Inflation Effects
- Jana Randall says the Middle East conflict raises energy-driven inflation risk and lowers confidence, threatening eurozone consumption and investment.
- She highlights second-round effects: businesses more readily pass costs to consumers and workers demand wages, risking entrenched inflation.