Wall Street Breakfast Inflation back on the Fed radar and expected to rise
Jun 8, 2025
Inflation is back on the radar, with CPI data expected to show a rise in both headline and core rates. The Federal Reserve faces challenges as it navigates this economic landscape amid fluctuating employment growth. Apple's upcoming WWDC is under scrutiny, with predictions it might not live up to expectations. Meanwhile, Biden's fiscal decisions are explored for their potential impact on inflation and interest rates, alongside exciting tech developments from MetaPlatforms and Microsoft.
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Inflation Rising from Tariffs
- Inflation is expected to rise due to higher tariffs with core goods inflation possibly peaking in early fall.
- Absorbing tariff costs through margins will become harder as price pressure persists.
Fed Conflict Over Inflation and Jobs
- The Fed faces conflict as employment and inflation move opposite ways amid inflationary pressures from tariffs and fiscal expansion.
- The Fed funds rate sits about 200 basis points higher despite unemployment nearing pre-2018 levels.
Apple's WWDC Focus on AI and Design
- Apple's WWDC will likely revolve around operating system design improvements and AI integration rather than major new announcements.
- AI features like battery optimization and public Wi-Fi syncing are expected in the new iOS.