Squawk on the Street SOTS 2nd Hour: The Fed’s Road Ahead, Accenture CEO on Earnings, & Fmr. Trump Defense Secretary Esper 6/20/25
Jun 20, 2025
Julie Sweet, the CEO of Accenture, shares insights into her company's recent performance and the market landscape. She emphasizes the importance of integrating Generative AI to drive growth, particularly in industries like shipbuilding and food manufacturing. The discussion also touches on the cautious approach of the Federal Reserve regarding interest rates, its implications for the economy, and evolving consumer behaviors. Additionally, the conversation highlights geopolitical tensions, particularly surrounding the U.S. approach to the Israel-Iran conflict.
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Fed's Cautious Rate Approach
- The Fed remains cautious about cutting rates due to inflation risks from tariffs.
- Officials are increasingly concerned about keeping inflation expectations anchored.
Fed Split on Rate Cuts Timing
- Fed Governor Waller supports rate cuts as soon as July if inflation trends down.
- However, most Fed officials remain hesitant due to tariff-driven inflation risks and labor market concerns.
Market Patterns and Tech Leadership
- The stock market could rise 10% more before a typical decline amid easing geopolitical tensions.
- Large tech stocks lead recovery but small and mid caps lag due to recession fears.