Becker Private Equity & Business Podcast
Inflation Falls – Not Enough to Comfort the Markets 3-12-25
Wed, 12 Mar 2025
In this episode, Scott Becker discusses the latest inflation data and its mixed impact on the markets.
Chapter 1: What is the main topic of this episode?
This is Scott Becker with the Becker Private Equity and Business Podcast. Today's discussion is about inflation falling, but that not being enough to comfort the markets. And I'll make three quick points. First, inflation falling gives a lot of comfort to people that are hoping that sooner or later, Chairman Powell and the Fed will be able to reduce rates. So that's good news.
Chapter 2: How does falling inflation affect market sentiment?
Second, notwithstanding that, and the fact that the market surged early this morning would have fallen back to about even with the Dow being down right now, the NASDAQ and S&P being slightly up, that could change a lot throughout the day.
Notwithstanding the markets originally surging on the inflation falling, that news, we're still seeing great concerns about the tariff policy and also about ultimately deficit spending and reducing deficit spending and whether that reduction in government spending is going to throw us into a recession. Now, again, if you listen to this regularly, I am not against reducing deficit spending.
In fact, I believe debt kills companies, countries, families. It's a horrible, horrible thing. We've got to get that deficit under control. But I do believe there's going to be some pain in doing so. Thank you for listening to the Becker Private Equity and Business Podcast. Again, inflation pause, but not enough to please the markets. Thank you for listening.