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Surveillance: Economic Decisions Pulling us Apart, Krueger Says

bloomberg-surveillance-podcast economics-business-work Apr 11, 2026 source →
Claims
104
Domain
economics-business-work
Reading time
9 min
Record
Surveillance: Economic Decisions Pulling us Apart, Krueger S

Claims from this story

Every atomic assertion extracted from the underlying record, ranked by evidence strength.

Oil is currently the big macro driver.

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Higher oil prices lead to higher breakeven rates and expectations of higher Treasury and global bond yields.

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The Bank of Japan and the European Central Bank want a steeper yield curve to support the financial sector.

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Morgan Stanley's fixed income trading revenue almost tripled from a year ago to $1.5 billion.

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Alan Greenspan's political skills were instrumental in making the Federal Reserve independent.

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People don't expect oil to go up much more than $10 a barrel from current levels.

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An OPEC meeting on November 30th in Vienna will give a sense of whether oil production freezes or cuts might happen.

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Oil prices are expected to edge higher, at least while there's speculation that OPEC and some big non-OPEC countries curtail supply.

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Non-OPEC supply, notably from the U.S., will kick in again and rig count numbers will go up sharply as soon as oil prices rise.

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The focus is on Treasury yields and whether there is a shift in regime.

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Oil could be one of the catalysts for higher interest rates at the back end of the curve.

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Inflation still has a lot of global inertia and spare capacity in the system, both internationally and in the U.S.

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The Federal Reserve expects to hit its inflation target over a two-year period.

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If inflation (core PCE deflator) moves into the low twos, the bond market is not priced for that scenario.

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A major bond market sell-off would be usually disruptive for the U.S. economy.

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If the bond market starts selling off sharply, the equity market is going to have a hard time as well.

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The dollar weakened a little bit against the 10 major currencies this morning according to the Bloomberg Dollar Spot Index.

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Traditionally, a stronger dollar is associated with weaker oil and commodity prices because they are priced in dollars.

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If oil prices go higher and Treasury yields (e.g., 10-year to 2%) bump up significantly, the dollar will actually benefit, especially versus commodity and EM currencies.

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Morgan Stanley's third quarter net revenues were $8.9 billion.

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Morgan Stanley's $1 billion fixed income revenue target is in line with management targets after restructuring.

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In the ETF markets, volume and liquidity lessens after 4 p.m. until the next morning.

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PDF Spaces in Adobe Acrobat can give clients the full picture with custom intros, audio summaries, and a helpful AI assistant to documents.

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Investors have put $4 trillion into independent registered investment advisors.

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Bond yields have started to quieten down a little bit over the last few days.

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The Federal Reserve is balancing many competing forces to maintain full employment and stable prices.

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In 2009, the U.S. was losing 800,000 jobs a month.

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Last year, the U.S. added almost 3 million jobs.

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The Federal Reserve is not of one mind on the definition of full employment.

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The U.S. economy could withstand the inflation rate getting to or above the 2% target for a little while because it was below it for so long.

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The Federal Reserve would lose a lot of credibility if it were to change the 2% inflation target.

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The 2% inflation target should be interpreted as an average, meaning it could be 3% for a few years to average out past lower rates.

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Hillary Clinton has focused on economic issues and developed very detailed plans for the future.

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Donald Trump seems to be flying by the seat of his pants on economic specifics.

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There is scope for improving the corporate tax system, investing more in infrastructure, and improving work-life balance in a fiscally responsible way.

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Hillary Clinton's infrastructure plan is fiscally responsible and paid for with corporate tax reform.

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Hillary Clinton's infrastructure plan would increase investment by about $500 billion over the first five years.

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Congressman David Camp's proposal for corporate tax reform was not too far off the Treasury Department proposal.

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Trade agreements can increase the size of the pie but affect who gets which slice.

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Too many workers get dislocated as a result of trade, and not enough is done to help them transition or make up for lost income.

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The rise in inequality in the U.S. started in the early 1980s.

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Investing in infrastructure could possibly bring back some people who have left the labor force.

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Economic forces and some corporate decisions have been pulling people apart, with too much profit going to the very top in corporations.

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CME Group S&P 500 and NASDAQ 100 futures trade nearly 24 hours with great liquidity.

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Morgan Stanley cut 25% of its front office staff in the fourth quarter of last year.

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Morgan Stanley had said they wanted to target roughly $4 billion in annual revenue after restructuring.

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Analysts surveyed by Bloomberg News had been expecting about $1.25 billion from Morgan Stanley.

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Morgan Stanley achieved a 23% pre-tax margin in its wealth management business this quarter, meeting its goal of 23% to 25%.

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Every single bank has beaten earnings expectations.

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China has been stealthily letting its trade-weighted index weaken.

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Equity markets are not responding to Chinese currency weakness in the same way as before.

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Ongoing Chinese currency weakness is expected on an opportunistic basis.

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Public investment is a main ingredient in keeping China's growth going.

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China has seen an explosion of mortgage lending and housing-related private investment.

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China is building up bigger problems and a credit gap that will likely manifest in 2018.

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The dollar-peso exchange rate is currently at 18.63.

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The Mexican peso has been an incredible proxy for the U.S. presidential election.

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The peso's problems are deeper than Donald Trump, and the unresponsiveness of the trade balance to peso weakness has been remarkable.

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Alan Greenspan had to reckon with the limits of the Federal Reserve's independence and political pressure early in his tenure.

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Richard Darman, budget chief in the White House, criticized Alan Greenspan, suggesting he was like Hitchcock's Psycho.

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