Squawk on the Street SOTS 2nd Hour: More S&P Record Highs, Netflix Breakdown, LIVE: Deputy Treasury Secretary 7/18/25
Jul 18, 2025
Michael Faulkender, Deputy Treasury Secretary, shares his expertise on the Stablecoin Genius Act and the administration's vision for crypto regulation. He tackles the current economic landscape, highlighting rising consumer confidence and its implications for market stability in the latter half of the year. The conversation also touches on the strategic moves within financial markets, especially regarding energy acquisitions and the evolving dynamics surrounding stablecoins and the U.S. dollar's global standing.
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Rising Consumer Confidence and Lower Inflation Expectations
- Consumer confidence has hit its highest level since February, signaling resilience despite economic uncertainty.
- Inflation expectations are dropping, which is encouraging for long-term economic stability.
Market Valuation and AI Impact
- The stock market's forward P/E ratios are stretched, but strong earnings support a bullish outlook.
- AI will benefit many companies beyond the 'magnificent 7', potentially broadening the market rally.
Strong Labor Market Amid Mismatches
- Initial unemployment claims are a key labor market indicator and remain low, signaling labor market strength.
- Some mismatches exist as graduates enter sectors with less demand, but no signs of labor market stall are evident.