CNBC's "Fast Money" The Fed’s Latest Rate Decision … And Uncertainty Around Oil Prices 6/18/25
Jun 18, 2025
Michael Kontopoulos, Deputy Chief Investment Officer at Richard Bernstein Advisors, shares insights on the Federal Reserve's steady interest rate decision and its implications for financial markets. Halima Croft, RBC's global head of commodity strategy, discusses how geopolitical tensions, particularly the Israel/Iran conflict, could disrupt oil prices. The conversation also navigates the risks of stagflation, consumer behavior amidst rising energy costs, and the future outlook for stocks like Oracle, highlighting the intricate ties between global events and financial performance.
AI Snips
Chapters
Transcript
Episode notes
Fed Signals Higher Inflation, Lower Growth
- The Fed raised its inflation forecast to 3% and lowered growth expectations to 1.4% due to tariff concerns.
- The market reacted cautiously, with bond yields peaking but no immediate drastic moves.
Fed's Backward-Looking Stance
- Fed Chair Powell appeared backward-looking and data-dependent despite stating forward-looking intentions.
- Inflation likely will rise further due to tariffs, with stagflation risks if unemployment rises concurrently.
Fed Comfortable With Slightly Hot Inflation
- The Fed shows increased tolerance for higher inflation around 3.1% PCE.
- Labor market strength dissuades them from cutting rates soon despite inflation concerns.