Bloomberg Surveillance Fed Decision and Big Tech Earnings
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Jul 31, 2025 
Lael Brainard, a Senior Fellow at Harvard and former Fed Vice Chair, shares insights on the intricacies of Fed policy, emphasizing the importance of maintaining independence amid inflation risks. Rich Clarida, Global Economic Advisor at PIMCO and former Fed Vice Chairman, reacts to recent Fed decisions, discussing the outlook for rate cuts. Together, they explore the balance between economic turbulence and policy-making, while illuminating how tariffs influence American consumers and tech giants' resilience in the evolving market landscape.
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Historic Tariff Levels Impact Economy
- The current tariff levels resemble those last seen during the Smoot-Hawley era, introducing unprecedented supply shocks.
- This high tariff uncertainty challenges economic forecasting and policy decisions at the Fed.
Fed Waits For More Data
- The Fed is cautious, seeking two more months of data before deciding on rate cuts.
- They balance ongoing inflation risks against signs of economic moderation and weakening demand.
Fed Independence Is Crucial
- Political pressure aiming to lower rates for government borrowing risks central bank inflation credibility.
- Maintaining Fed independence is vital for effective inflation control.