Wall Street Breakfast First signs of tariff inflation
Jul 15, 2025
Inflation trends are starting to show the impact of tariffs, pushing consumer prices higher. Wells Fargo's outlook is grim as it cuts guidance on net interest income. A game-changing hydropower deal between Google and Brookfield Asset Management aims to power data centers with renewable energy. Insights are shared on which stocks might outperform in the upcoming earnings season, setting the stage for market shifts as companies prepare for their quarterly results.
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Tariffs Driving Price Inflation
- Tariff costs have become noticeably visible in the June CPI data, pushing prices higher for primarily imported goods.
- Items like appliances, sports equipment, toys, and video/audio products saw sharp price increases indicating tariff inflation effects.
Selective Impact of Tariffs on Prices
- Certain products like mobile phones and new vehicles remain exempt or unresponsive to tariff-driven price hikes.
- However, some automakers plan to increase prices soon, suggesting tariff impacts may soon affect vehicle prices as well.
Fed's Stance Firm Against Inflation
- The Fed is unlikely to cut interest rates until inflation is firmly under control, likely not before September.
- Political pressures within the administration don't sway the Fed, which is focused on maintaining its fight against inflation.