Wall Street Breakfast Interest rate debate
Jul 17, 2025
Brian Stewart, a keen market analyst, joins the discussion to dissect the growing friction between political figures like Trump and the Federal Reserve. He shares insights on the current economic climate, pinpointing the complexities of inflation and employment figures. The conversation shifts to recent airline earnings, underscoring a strong outlook despite global challenges. Finally, Stewart evaluates Netflix ahead of its earnings report, highlighting investor optimism while expressing concerns about overvaluation amid the ongoing interest rate debates.
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Trump vs. Powell on Interest Rates
- There is growing tension between Trump and Powell over interest rate policies.
- Trump pressures for cutting rates to dangerously low levels despite solid economic data.
Economic Data vs. Political Pressure
- Economic data shows a healthy economy with low unemployment and modest inflation.
- Powell's reluctance to cut rates stems from lessons learned from post-COVID inflation spikes.
Treasury Market Signals
- Treasury yields show interesting trends: long-term rates rising while short-term rates decline.
- Longer duration bond selling reflects investor displeasure amid ongoing interest rate debate.