RiskReversal Pod Guy Adami Is A Vibe
Aug 14, 2025
Recent remarks from Treasury Secretary Scott Bessent spark a heated debate on Federal Reserve policies and job data. The hosts dive into the complexities of interest rate cuts and the potential politicization of economic data. They analyze market indicators like the VIX, crude oil, and Bitcoin prices, reflecting on market stability and institutional trust. Discussions also highlight the challenges investors face amid fluctuating market sentiments and the intricate dynamics between retail and institutional investors.
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Conflicting Claims About Jobs Data
- Scott Bessent argued weak revised jobs data meant the Fed should cut rates sooner.
- Guy Adami says you cannot claim data is both soft and rigged at the same time.
Fed's Dual Mandate Creates Tough Tradeoffs
- A year ago the Fed cut rates 50bps despite a low unemployment rate and moderating inflation.
- Dan Nathan and Guy highlight the Fed's tension between supporting jobs and preventing inflation from reaccelerating.
Why The Fed Prefers Caution On Cuts
- Jerome Powell avoids premature easing because past Fed mistakes let inflation return.
- Guy argues the inflation 'genie' is hard to restrain so the Fed prefers caution to preserve credibility.