Motley Fool Money Wait and See on Rates and Tariffs
45 snips
May 9, 2025 
Bill Mann, Chief Investment Strategist at Motley Fool Asset Management, Tim Beyers, Senior Analyst at Motley Fool, and Jason Hall, a contributor who attended Berkshire Hathaway's annual meeting, delve into the Federal Reserve's cautious stance on interest rates and tariffs. They explore how automakers like Ford are reacting to these economic pressures and highlight Uber and DoorDash's thriving delivery businesses. Hall shares insights from the Berkshire meeting, discussing Warren Buffett's potential succession and the future under Greg Abel, while Mann and Beyers analyze market opportunities with Apple and Ibotta.
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Fed's Backward-Looking Approach
- The Fed is backward-looking and mostly reacts to market conditions rather than trying to preemptively influence them.
- Jerome Powell's "wait and see" approach towards tariffs and inflation is appropriate given the blunt nature of rate cuts.
Tariffs Focus on China and Alliances
- Tariffs mostly target China, and the US tries to build alliances by applying tariffs to other countries like the UK.
- The ongoing US-China tariff situation overshadows other trade agreements, which are often partial or more symbolic than real deals.
Need for Transparency Amid Tariffs
- Companies face significant uncertainty due to tariffs and trade policy, impacting guidance and financial forecasts.
- Honest transparency from management about challenges and how they intend to handle them is the best investors can hope for.