Marketplace Concerned consumers keep on spending
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Aug 15, 2025 Join Greg Ipp from The Wall Street Journal and Rachel Siegel from The Washington Post as they dive into the intriguing dynamics of consumer behavior amidst rising inflation and tariffs. They discuss why despite gloomy economic sentiments, consumers are still spending. The conversation also highlights the tension between economic pressures and retail growth, along with insights on wealth taxes and their complications. Plus, a surprising anecdote about Putin’s visit to a NYC gas station adds a quirky twist to the economic narrative!
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Inflation Is Rebounding, Not Vanishing
- Inflation has stopped falling and has hovered around 3%, complicating Fed rate decisions.
- Higher service prices and some goods show tariffs may be feeding into consumer prices over time.
Tariff Costs Will Eventually Reach Consumers
- Companies can temporarily absorb tariff costs but eventually must raise prices, drop products, or reshore sourcing.
- The full effect of tariffs may take months to surface because businesses only recently gained policy certainty.
Two Stock Markets: Tech vs. The Rest
- Tech giants, especially AI-related firms, are lifting the market while other sectors lag.
- Investors treat weak economic data as a reason to expect Fed cuts, which can boost stocks despite bad news.