Marketplace Morning Report What happens if Trump gets the interest rate he wants?
Aug 28, 2025
The podcast dives into President Trump's push to lower the Federal Funds Rate from 4.5% to 1%, exploring the potential impacts on loans, housing markets, and inflation. It also discusses Nvidia's disappointing financial results, raising questions about AI investments. Additionally, the recent logo change by Cracker Barrel illustrates how consumer feedback can dramatically influence brand strategy and market reputation, highlighting the power of upset customers in today's competitive landscape.
AI Snips
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Transcript
Episode notes
AI Chip Demand Shows Cracks
- NVIDIA's Blackwell chip is selling well, but data-center revenue lagged analyst expectations.
- The shortfall raised concerns that AI spending growth might be slowing despite strong overall revenue.
Cheap Credit Spurs Demand And Wages
- Cheaper business and auto loans would raise borrowing and spending by firms and consumers.
- Greater labor demand would push wages up and contribute to higher prices economy-wide.
Lower Fed Rate Would Heat The Economy
- Cutting the federal funds rate to 1% would immediately lower short-term and long-term Treasury yields across the curve.
- That boost to borrowing would heat the economy and likely rekindle significantly higher inflation.