Squawk on the Street SOTS 2nd Hour: Goldman Sachs Vice Chair, Orlando Bravo Talks Tech, & Movers To Know 10/7/25
Oct 7, 2025
Robert Kaplan, former Dallas Fed president and Goldman Sachs vice chair, shares insights on inflation and labor market dynamics, amid a government shutdown. He discusses the cautious stance on Fed rate cuts and the rise of gold amidst fiscal concerns. Joining him, Orlando Bravo, co-founder of Thoma Bravo, argues that AI is driving substantial growth, distinguishing it from a bubble. He explores AI's transformative effects on software and warns of potential job displacement in call centers, all while advocating for savvy investment choices in the private market.
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Episode notes
Markets Price Multi-Year AI Tailwinds
- Markets are focused on multi-year AI-driven industrial changes rather than short-term shutdown noise.
- Robert Kaplan warns inflation remains above target and services inflation keeps it sticky.
Services Keep Inflation Sticky
- Inflation is running well above target, driven mainly by services and rents.
- Kaplan would need clear labor-market weakening before supporting more rate cuts.
Don't Preprice Aggressive Fed Cuts
- Avoid assuming the Fed will cut aggressively while inflation remains above target.
- Wait for sustained labor-market weakness before pricing in additional rate cuts.