Has the Fed Accepted 3% Inflation? (With Jim Bullard)
Summary
Hosts Colin Martin and Lizanne Saunders analyze rising global bond yields, attributing the surge to Fed policy uncertainty and fiscal concerns rather than inflation expectations. They discuss how higher yields compress equity valuations, particularly for growth stocks, marking a shift from the "Great Moderation" era. Former Fed President Jim Bullard joins to address stubborn core inflation, the AI boom’s economic impact, and geopolitical risks, while clarifying misconceptions about technology and employment.
Topics discussed
Introduction to On Investing podcast
Drivers of rising global bond yields and term premium
Impact of higher yields on equities and historical regimes
Introduction of guest Jim Bullard
Fed strategy for reducing core inflation to 2%
AI as a general purpose technology and market risks
Market uncertainty under new Fed Chair Kevin Warsh
Regime-based economic forecasting and sectoral cycles
Geopolitical risks and private credit concerns
Fed's stance on financial markets and wealth effects
Misconceptions about AI and technological unemployment
Upcoming economic data and Jackson Hole speech
Conclusion and social media information
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