“Aren’t You Tired Of Being Wrong?” – Economist Slams Bloomberg Reporter In Testy Exchange
Neil Dutta and his work at Renaissance Macro are widely disseminated in the financial press, and his frequent appearances on business TV are usually informative but staid.
However, sparks flew – albeit briefly – during a TV interview with Bloomberg reporter Lisa Abramowicz on Thursday.
The dustup ended amicably enough, with Dutta swiftly apologizing, and Abramowicz explaining that she was simply playing devil’s advocate.
Let’s take a step back to offer some context: Dutta’s bullish view on the American economy and markets has proven largely correct over the past year. And with markets in the red Thursday, Dutta explained that the timeline of the Fed’s tapering plans is more of a distraction for investors.
As Abramowicz started into a challenge to Dutta’s point, he groaned.
“Lisa aren’t you tired of being wrong for the last 12 months?” Dutta pointedly joked.
“I’m being skeptical I’m not making a market call.”
“Well thank God,” Dutta interjected.
“Wow, you came out with gloves on.”
The tension quickly dissipated as Dutta elaborated on his view.
“It’s not so much about the inflation in my view it’s about what the Fed is going to do about it. I concede that point – we have had a bit of ‘stagflation lite’…even the Fed staff took down their growth outlook and revised up their inflation outlook. But I think that’s going to be temporary. You have seen things like used car prices come down. If anything, in the July data, the supply chain issues are becoming less prevalent,” Dutta said.
Afterward, Abramowicz asked:
“Neil can I ask you a question. Why does it make you upset to hear people come up with bearish counterpoints…?”
He offered a reasonable sounding explanation:
“Because my job is to take an economics call and turn it into a markets call so they can make money…at the end of the day, it’s not what GDP is, but how you can use that to make a market call.”
As the segment wound down, another Bloomberg host chimed in:
“You two should have your own show,” prompting Abramowicz to once again assert that she wasn’t making a ‘market call’, and that “it’s important to have skepticism because that is our job as journalists.”
Watch the clip below:
— Bloomberg TV (@BloombergTV) August 19, 2021
Meanwhile, Dutta laid out his view in more detail in a BI editorial published Thursday: The Fed, Dutta believes, is “willing to tolerate a bit more inflation than it has been letting on” and that despite all the talk of tapering, “I would be on the lookout for a dovish policy shift from the Fed next year.”
Thu, 08/19/2021 – 20:00