BBC News: Michael Landsberg Appears on ‘Business Today’ To Discuss Inflation

February 19, 2025

Michael Landsberg, Chief Investment Officer at Landsberg Bennett Private Wealth Management, joined Business Today on BBC News to provide his outlook on inflation, Federal Reserve policy, tariffs, and the stock market. “The Fed has gotten inflation wrong for the last four or five months,” he stated, explaining why he expects policymakers to remain cautious on rate cuts.

Landsberg also discussed the potential impact of tariffs proposed by former President Trump and their role in inflation trends, while reaffirming that stock market performance is ultimately driven by earnings growth.

Key Takeaways:

  1. Federal Reserve Caution: Landsberg expects the Fed to hold off on rate cuts for the foreseeable future. “The Fed was expecting CPI to head toward 2%, but it has actually risen to 3%,” he noted, arguing that inflation trends do not support easing policy at this stage.
  2. Inflation Trends Are Moving Higher: Inflation was already set to rise, regardless of who is in office. “We had inflation going from 2.44% in September up 100 basis points to 3.5%, independent of the election outcome,” he said. He views the recent inflation uptick as part of a broader trend rather than a short-term anomaly.
  3. Tariffs Are Difficult to Model: Landsberg does not see tariffs as an immediate inflation driver, as they are often used as a negotiating tool rather than long-term policy. “If they do stick, it could push inflation higher, but I don’t see that as a first-half story—it’s more of a back-half story,” he explained.
  4. Stocks Are Still Supported by Earnings Growth: Despite concerns over tariffs and inflation, Landsberg believes stocks remain attractive due to strong earnings. “S&P earnings are up 10% year-over-year, NASDAQ earnings are up 20%, and even small caps have finally bounced back,” he said. Given this backdrop, he sees continued upside potential for equities.

Landsberg maintains a positive outlook for the market, as corporate earnings remain strong despite economic uncertainties. He expects inflation to remain elevated but does not anticipate rate cuts from the Fed in the near term. While tariffs could eventually become a factor, they are not an immediate concern. His key message: focus on earnings, as they continue to be the primary driver of stock performance.

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