Bloomberg Surveillance PCE Reaction and Market Outlook
Sep 26, 2025
Tiffany Wilding, an economist at PIMCO, takes center stage with insights on inflation and labor markets. She discusses managing fixed-income investments in a booming economy and highlights the winners and losers amidst the Fed's potential policy pivots. Wilding shares her take on recent inflation data, emphasizing tech's role in labor adjustments. She also evaluates housing affordability and maintains a neutral interest rate outlook around 3%, all while contemplating economic growth trends amidst evolving challenges.
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Housing Tight Supply But Affordability Problem
- Housing fundamentals show tight supply but affordability remains a political and income problem.
- Wilding expects sluggish price appreciation until incomes catch up to elevated prices.
Europe Slower But Not A U.S. Drag
- Europe lags U.S. growth and won't meaningfully drag the U.S. economy.
- Aoifinn Devitt sees Europe as weaker but not a contagion for U.S. resilience.
Return To Diversified Portfolios
- Re-diversify away from concentrated tech: add small/mid caps, infrastructure, real estate, and international.
- Moneta uses these allocations to insulate portfolios from tech froth and volatility.