GM73: Debt, Deficits, and the Road Ahead ft. Jason Furman

Top Traders Unplugged

Jason Furman, Professor of Economics at Harvard and former Chairman of the Council of Economic Advisors under President Obama, joins Alan Dunne in this episode to share his thoughts on the current economic outlook. They explore the recent improvement in the inflation data, whether the Fed is justified in claiming victory in its inflation fight and the likely trajectory for inflation over the next year. On monetary policy, Jason expects further rate cuts from the Fed this year but is sceptical about how much additional easing we may see next year. That ‘s partially because he sees a higher neutral policy rate and partly because high fiscal deficits looks set to remain a feature of the next administration. Looking further ahead Jason offers his thoughts on the longer term growth outlook, the likelihood of an AI-led productivity boom, the pros and cons of active industrial policy and whether persistent fiscal deficits might eventually lead to a debt crisis.

-----

EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to [e-mail]

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Alan on Twitter.

Follow Jason on Twitter.

Episode TimeStamps:

02:10 - Introduction to Jason Furman

04:28 - The state of the economy

04:42 - Is inflation stickier than we thought it would be?

06:01 - Is inflation stickier than we thought it would be?

09:40 - The outlook for inflation

12:34 - A move in the right direction?

14:34 - Is the neutral rate a useful concept?

17:35 - The risk of being too sensitive to current data

21:05 - Is the shift towards transparency actually positive?

22:28 - Is the economy too complicated to forecast?

23:44 - Is the era of ultra low rates behind us?

26:46 - Furman's thoughts on the U.S deficits

28:29 - Has the Treasury managed the situation right?

31:34 - Will the political environment change due to larger acceptance to deficits?

34:46 - Will Powell and Trump be able to communicate?

36:32 - A win for Trump = the end of the Fed?

37:57 - Is the Fed in danger?

39:24 - Will the increasing debt levels cause quantitative easing?

40:54 - Productivity - reasons to be optimistic?

43:57 - Is AI a threat to employment?

45:25 - Furman's perspective on the industrial policy

49:33 - Are we going too far in the wrong direction?

51:06 - China's influence on the global economy

54:05 - The outlook of economical growth

55:38 - Is Europe in trouble?

57:12 - Advice for other investors

Copyright © 2024 – CMC AG – All Rights Reserved

----

PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

Privacy Policy

Disclaimer