Squawk on the Street SOTS 2nd Hour: New Nasdaq Highs, Bank CEOs Defend Powell, Plus: CEOs of Pepsico, Fifth Third Talk Results 7/17/25
Jul 17, 2025
Mark Coombs, CEO of Ashmore Group, sheds light on the intricate relationship between politics and the Fed's influence on emerging markets. David Maracle, Goldman Sachs' chief U.S. economist, shares insights on tariffs, inflation, and the Fed's strategies moving forward. Tim Spence, CEO of Fifth Third Bank, discusses consumer health and small business demand, emphasizing the importance of economic indicators. The discussion also touches on PepsiCo's challenges with consumer spending, especially among lower-income families ahead of earnings.
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Fed Independence’s Crucial Role
- Central bank independence is crucial for maintaining inflation control and economic stability.
- Political meddling with central banks, as seen in various countries, risks severe economic consequences.
Economic Data Supports Patience
- Latest economic data signals steady inflation trends and no urgent need for major rate cuts.
- Tariff effects persist but likely won't cause prolonged high inflation.
US Policies Impact Global Capital
- Emerging economies closely watch US policies because US economic stability affects global capital flows.
- Political challenges to central bank independence raise nervousness about the US dollar's reliability.