Marketplace All-in-One Small firms cross their fingers for a rate cut
Sep 12, 2025
Jordan Holman, a consumer pulse reporter at the New York Times, discusses the struggles of small firms as they await a potential Fed rate cut. She explains how interest rates significantly impact smaller companies and shares insights into the challenges faced by businesses amid rising inflation and tariffs. The conversation dives into how these economic factors influence consumer sentiment and spending, as well as a fascinating exploration of how scent can sway consumer choices. The podcast wraps up by reflecting on current economic headlines and consumer confidence.
AI Snips
Chapters
Transcript
Episode notes
Tariffs Act Like A Consumption Tax
- CPI surprised to the upside, flagging that tariffs can act like a consumption tax and push prices higher.
- That dynamic may reduce consumer spending and eventually slow inflation, creating complex Fed decisions.
Import Surge Masks Future Price Pass-Through
- Imports surged in August as companies rushed to bring goods in ahead of tariff changes.
- That stockpiling means lower landed costs now may still get passed to consumers later, keeping prices elevated.
Small Caps Depend On Rate Cuts
- Small-cap stocks lagged the S&P 500 because big tech led the market's gains since 2019.
- A Fed rate cut could disproportionately help small caps by lowering their borrowing costs and improving profits.