Conference Presentation, Panel
Permanent Disruption: Navigating the Road Ahead
Milken InstituteDan Carol, Michael Piwowar, Tammie Arnold, Elaine Buckberg, Maurice Jones, Mike Pivovar
- The Milken Global event's 25th anniversary is scheduled for May 1st, aiming to unite cross-sector innovators to scale solutions within the four trillion dollar public finance sector.
- Event programming focuses on infrastructure deployment, ESG for the municipal bond sector, and government innovation through interactive plenary and breakout sessions.
- A sharpened emphasis on equity is planned for the bond market, engaging over 50,000 issuers across public policy, technology, and finance.
- The economy is forecast to have strong momentum in 2022 with 3.9% GDP growth achievable, despite potential Q1 slowdowns due to Omicron.
- Labor market improvement is expected to continue throughout 2022, with recovery not derailed by January data anomalies.
- Inflation, particularly in goods, is projected to ease in the second half of the year, potentially falling below three percent by year-end.
- The Federal Reserve is positioned to raise rates starting in March following accelerated bond purchase tapering, with an average FOMC forecast of three hikes totaling 75 basis points and a personal projection of 100 basis points.
- Higher interest rates are anticipated to moderate inflation and dampen demand without stalling economic growth, remaining historically low relative to pre-pandemic levels.
- General Motors plans to launch 30 new electric vehicles globally by 2025 and sell over one million EVs by mid-decade, with production shifts aligning to sales trends.
- Major automakers including General Motors, Ford, and Stellantis have pledged to reach 40% to 50% EV sales mix by 2030.
- The Biden administration targets funding half a million EV chargers by 2030, with McKinsey estimates suggesting 64% of charging will occur at home.
- New career paths requiring training for employees transitioning to EVs are expected to emerge alongside shifting auto plant production.
- The 110 Coalition, comprising over 60 companies, is committed to advancing one million Black individuals into family-sustaining careers over the next 10 years.
- Municipal leaders are identified as critical actors for scaling sustainable solutions that could impact the broader U.S. economic transformation.
- The digital bond market is expected to transform municipal funding and fixed income, with blockchain infrastructure adoption viewed as a matter of timing rather than feasibility.
- The current municipal funding system is deemed inadequate for current needs, while the digital asset bond market is already operational in the initial phase of the muni loan market.