Wall Street Breakfast Four Mag 7 stocks and the Fed on tap
8 snips
Jul 27, 2025 The Federal Reserve's decision on interest rates is up for discussion, particularly around its independence. Tech giants like Apple, Microsoft, Meta, and Amazon are all set to announce their earnings, shedding light on their performance amid uncertainties. Additionally, there's a notable trade agreement between the U.S. and EU aimed at avoiding tariff complications. Public reactions to recent tax changes favoring the wealthy add an intriguing layer to the economic landscape.
AI Snips
Chapters
Transcript
Episode notes
Fed Rate Hold Amid Political Pressure
- The Federal Reserve is expected to keep interest rates steady with a 98% confidence level.
- Political pressure on Fed Chairman Jay Powell raises concerns about the Fed's independence and market stability.
Fed Independence Under Threat
- Frequent reassurances from officials aim to calm market fears over firing Powell, yet risks remain.
- Fed's reputation for independence is fragile and essential for economic trust and reserve currency status.
Rate Cuts Signal Recession Risk
- Markets expect more than 200 basis points of Fed cuts by 2026, joined by historical recession risk.
- Large rate cuts almost always coincide with recessions, except in unique past inflation-driven cases.