Wall Street Breakfast Powell v Trump and megacap earnings
Jan 26, 2025
Discussion reveals the tension between Fed independence and political influences. Major tech giants like Apple and Microsoft are set to release their earnings, signaling potential market shifts. Alphabet might be eyeing a spot in the competitive AI chip arena, challenging NVIDIA. Concerns over a global stock bubble linger, with only one bubble condition left unmet. The impact of generative AI on productivity and market behavior is also on the table, prompting a deep dive into future risks and opportunities.
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Fed Rate Decision and Potential Q&A Focus
- The Federal Reserve's upcoming rate decision is expected to be uneventful, with no anticipated changes.
- However, the Q&A session could be interesting if reporters focus on Chairman Powell's relationship with former President Trump.
Trump's Stance on Interest Rates
- Former President Trump has expressed his desire for interest rates to drop immediately and stated his intention to discuss this with Chairman Powell.
- Trump claims to know more about interest rates than the FOMC and Powell.
Conflicting Views on Apple's Earnings
- Apple's expected Q1 earnings are a topic of discussion, with differing views on iPhone sales.
- Jeffries downgraded Apple due to weak iPhone sales, while Bank of America maintained a buy rating, expecting strong demand for the iPhone 16.