Monetary Matters with Jack Farley Beyond the Fed | Jack & Max on FOMC, GDP, Earnings & Tariffs
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Jul 31, 2025 Jack and Max dive into the implications of the recent FOMC rate cut and its ripple effects on the stock market. They analyze the latest GDP figures and how tariffs are influencing inflation, cautioning against oversimplifying their impact. The duo also highlights the unique challenges posed by tariffs on different sectors, comparing tech firms to traditional manufacturers. Additionally, they explore the evolving bond market and the importance of transparency in alternative asset management, all while contemplating the future of Chinese equities amidst shifting trade policies.
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AI Boosts GDP Amid Slowing Consumer
- AI investment is significantly driving GDP growth, offsetting softer consumer demand. - Capital expenditure in AI has surpassed contributions from US personal consumption expenditure.
Tariff Impact on Inflation is Moderate
- Tariffs exert moderate inflationary pressure, mostly absorbed by businesses so far. - This cushion limits immediate consumer price increases but sustaining inflation risk remains.
Tariffs Influence Price-Raising Behavior
- Companies use tariffs as pretext to raise prices on non-tariffed items, boosting inflation psychology. - Federal Reserve remains cautious to counter potential sustained inflation despite hopes for transitory price shocks.
