Real Story: Failure to Launch
"I'm still in the soft-landing camp," Stuart Hoffman, chief economist at PNC Financial, tells Aaron Task on Monday's "The Real Story" podcast.
Housing and a slowing consumer are "going to temper the rate of growth [but] the economy is going to hang in, and that means less inflation and maybe make the Fed a little happier."
Hoffman foresees no recession this year and the possibility of rate cuts later in this year, which should mean a continued favorable environment for equities; PNC maintains an overweight recommendation for stocks, he says.
Looking ahead to Tuesday's CPI report, the economist forecasts a 0.2% rise in core CPI. "If we get 0.3% [with rounding], that might hurt a little bit, but if it's 0.1%, it's going to be great for the stock and bond markets," Hoffman says. "That could put a real fire to the stock market."Task's second guest, TheStreet.com's Nat Worden, discussed the day's big corporate news: DaimlerChrysler's (DCX) agreement to sell an 80% stake in its Chrysler Group unit to private-equity firm Cerberus Capital Management. The deal is the beginning of a breaking down of barriers that have kept the U.S. auto industry from a major restructuring, Worden says, offering insights on what the deal means for GM (GM) and Ford (F). In the remainder of the podcast, Task reviewed the day's other deals, including:
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