David Rosenberg Explains Why Inflation & Interest Rates Will Go Lower

Part 2 of 2
Going against the consensus again, influential economist David Rosenberg explains why inflation will be lower and the Fed will have to cut interest rates more than expected in the year ahead.
WEALTHTRACK episode 2132 originally broadcast on February 07,2025

[@MarciaGeorgiades]

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[@chrisbentley71]

My mentor would always say, “being correct too early is still wrong”. The speaker needs to discuss potential strained treasury auctions - that is where the water will boil.

[@engyn0]

This

[@wheretherearewolves]

This guy has literally been wrong about everything for the past 5 years. He screamed There is no inflation! as prices rose over 20%.

[@c2225]

There are those who know they don't know, and those who don't know they don't know

[@peterbedford2610]

Yup. And they just keep recycling him

[@steveeuphrates-river7342]

I have to agree here. He's missing the notion that even a small tariff raise has an exponential effect as goods criss-cross the border as part of the modern manufacturing process.

[@mmercato7174]

He is a Journalist creating storys... As long he is afraid , Markets will rise !

[@MonteRosa849]

Why do you recycle this guy who has been mega bearish over the last 10+ years and would have destroyed your ability to create wealth in a colossal way??

[@kuang-chengyushankao1395]

謝謝！

[@LilyRodriguez-p4m]

Natalie Kayla Kimberly said as inflation slows, interest rates may follow suit, offering relief to borrowers and potentially stimulating economic activity.

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@@SamuelMitchell-o5g She goes by Natalie Kayla Kimberly I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@MonteRosa849]

Why is he back again? His advice has done nothing but loose you money over the last 10 years!

[@Carol-cb9yu]

Just came back from Costco...... I am shocked! No eggs, ribeye up 20% and avocadoes up 30%. It's a problem. Who cares about rate of change. It changed.

[@thomasmazzola4760]

Rosenberg should admit he’s wrong and has been wrong for the past four years. You lose all credibility when you don’t admit you were wrong and move on.

[@SuperRockcore]

Somebody’s paying this guy, for sure.

[@ianLord77]

The only certainty is that nobody knows the future. If you ask 5 economists you will get 10 different opinions. I think Buffett said it best that market forecasters make fortune tellers look good and any company that has an economist on staff has one too many.

[@kerrybyers257]

Ok then. Inflation rate is under control. PRICES are still WAY TOO HIGH! Standard of living is crashing.

[@Da_MaSteR_TradOOrR]

lowering the rate of inflation doesn't mean you lower prices, you just make them going higher slower. What is accrued is there to stay because prices always go up. This is of course the general rule then the process is not linear, but probably you can understand that

[@earl-d4n]

check your eggs! LOL!

[@gordonsteen8415]

Food. Immigrants are being pushed out, elevating costs. Seniors are on fixed income. SS is running out of money. Where are we going?

[@stephenlaurence8650]

The expansion of the money supply will ultimately determine inflation growth. Zero interest rates will be good for government but not bond owners, but if government deficit spends significantly more new money needs to be created. Add to this private banks creating new credit in the act of lending will fuel inflation. I agree slowing or decreasing productivity will help keep inflation down but it won't stop it or hold it under 2%. Depends how much new money is created and how much bad debt is purchased by the FED.

[@dvrbt2866]

Lowering rates will be great for LT bond funds like TLT.

[@SpringRubber]

Nice comment about "Powell the Pivoter" and it seems pretty true, to me anyway. But I find Mr. Rosenberg's prediction that the Fed's future moves will be resuming a downward trend of rates to be inconsistent with a pivoting Fed Chairman. Powell has been saying for at least the past couple of years that they will watch the data and react to the data after it comes in.

[@phillyfathead]

He definitely got conviction in his beliefs

[@dieseldavebrown]

interesting point of view, it makes sense as 70% of the economy is services, AI will reduce labour costs and will therefore be deflationary

[@thomasmazzola4760]

18 months, this inflation has been here for four years and isn’t slowing down. Your credibility is wrecked go back and listen to podcast from him four years ago everything he said was wrong.

[@MeJonTheDon]

Dude, if prices don't go back down, inflation is absolutely problem. People understand the rate of change has slowed, but that isn't the point. Is it that hard to understand?

[@nonexistent5030]

He will raise tariffs every year... 10% actually. with an extra 15% on the punished.

[@davidfrankel9267]

Best cure for high prices is high prices... Unless wages keep up. Mmmmm

[@tmclean9]

I understand what David is saying, but the prices on the ground do not agree with his thesis. Prices are higher in 2025 than 2024. Look at insurance, veggies, golf balls, etc.

[@MeJonTheDon]

Stock inflation is still inflation. If wages go down and sticks go up, the average person loses purchasing power to an even greater degree

[@craigbrowne5806]

The perma bear is now a bull? I think Rosie is the new Cramer lol.

[@ELIOSANFELIU]

Thank you¡¡

[@kz1iv]

In your dreams the prices of everything will go down! Inflation high or low, prices of everyday stuffs are at all time high every day.

[@DerraKormino]

My biggest concern, given the current inflation rate, is how to grow my $300k reserve, which has been sitting stagnant for a long time with minimal gains. I understand the long-term strategy, but with inflation eroding my savings and my portfolio losing value daily, I need to find a solution quickly.

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[@johndeacon1496]

Great show. Tons of insightful independent analysis.

[@bucolic_frolic1284]

Well-reasoned if a bit curmudgeonly. He's none too keen on labor, pays attention to exchange rates, and sees little downside to AI (a point I'd dispute). Would love to know the basis for his recommendations. Does he sit and crunch data all week with ever more complex econometric models? Or is it all political economy back and forth with other elites in his profession? Never miss his interviews!

[@martinithechobit]

Always the end recommendations.

[@ib12541]

i would think the market would be a better determiner of rates.

[@c2225]

No way inflation will go there

[@JosePerez-u1c]

Hey Consuelo 👋, I want to see 👀 how many of David's predictions 🤔 will come to fruition in 2025! We'll just have to wait ✋️ 😔 and see 👀 🙄!😅😊

[@chessdad182]

I'm betting on stagflation.

[@parkerbohnn]

Most are betting on higher inflation in America.

[@drewjohnson9338]

I agree

[@kikolatulipe]

9:26 a bully in a school ? Just name it :-)

[@kikolatulipe]

So the tariffs is a zero sum game because the currency devaluation ! ? And the strengthing of US dollar

[@mehrdadmithra9591]

Anywhere documented that 2007 has been a recession?

[@mmercato7174]

Is he really sure or just guessing??

[@tybollinger1231]

David is the Mr Magoo of famous economists. He lacks a basic understanding of the fundamentals of how the economy works. He is wrong 90% of the time, and is a perma-bear and perma-deflationist. He 100% of the time predicts lower bond prices, approaching economic weakness, coming deflation, and is a bond perma-bull. He is laughed at and scoffed at behind his back, he is a laughing stock among economists. The mystery is why is he so popular. I think he scores high in terms of style points, and fools lots of people into thinking he is smart. He has strong social sequencing skills, but is a bozo in terms of understanding economic concepts. Listening to this guy will be harmful to your financial health.

[@MeJonTheDon]

Ggl knows how to censor but can't get rid of all the spam in the comments? What a joke

[@KateHennes]

I am at the beginning of my "investment journey", planning to put 385K into dividend stocks so that I will be making up to 30% annually in dividend returns. any good stock recommendation on great performing stocks or Crypto will be appreciated...

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[@fhgfhfhgf]

I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $200k passively by just investing through an advisor, and I don't have to do much work. Inflation or no inflation, my finances remain secure. So I really don't blame people who panic.

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[@johnnyahmclean8934]

Crazy Early! I love it. David, you're amazing. Thank you for a great interview

[@mmercato7174]

Paul Walker did the wrong thing ! Buybuy Buy more stocks ! Dont let Inflation fool you ! 🏋‍♀🚀

[@parkerbohnn]

Stocks crashed during the inflationary 1970's when the markets were at fair market value instead of 10 times fair market value today.

[@martinithechobit]

yaaaa boi.

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[@deez994]

wow. super helpful. bring this guy back

[@silviofontana5144]

BS