Squawk on the Street SOTS 2nd Hour: Economic Outlooks & Recession Odds 4/4/25
10 snips
Apr 4, 2025 
Jan Hatzius, the chief economist at Goldman Sachs, shares his insights on the economic landscape defined by rising trade tensions and recent market volatility. He discusses the implications of tariffs on industries like tech and energy, while highlighting the role of positive job growth and lower oil prices as potential buffers. The conversation delves into recession risks, consumer behavior shifts, and urgent purchasing trends. Hatzius also addresses how compliance and tariff uncertainties affect major companies, including Nintendo.
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Market Sell-off and Silver Linings
- The stock market is experiencing a major sell-off due to new tariffs imposed by China.
- Despite the negative impact on certain sectors like tech and retail, there are potential silver linings to consider.
Fed's Potential Response to Tariffs
- The Federal Reserve has room to cut interest rates, which could help mitigate the negative economic impact of the tariffs.
- The market anticipates the Fed will prioritize economic growth over inflation concerns.
Fed Should Focus on Growth
- The Fed should prioritize economic growth over concerns about one-off inflation shocks caused by tariffs.
- The market suggests the need for interest rate cuts due to deteriorating growth outlook.