The Big Short 2.0

The podcast features Andrew Slazenger, Freya Beamish, and Dario Perkins discussing current economic issues. They address concerns about strains in US money and equity markets, the potential inflationary impact of Trump's tariff rebates, and how central banks should respond to the AI boom. Dario expresses less worry about money market strains compared to Freya, who focuses on potential hedging shocks. They debate the impact of QT and liquidity. The panel agrees that Trump's tariff rebates could stoke inflation due to a positive fiscal impulse against supply constraints. Regarding AI, they explore whether central banks should respond and consider the historical context of productivity shocks. Finally, they briefly discuss the UK budget, potential tax increases, and the implications for Gilts and Sterling.