Wall Street Week Hubbard on Fed Cut Fallout, Open Source AI, Nuclear Bet, Department Store Revival
12 snips
Dec 12, 2025 
Glenn Hubbard, an economist and former chair of the Council of Economic Advisers, shares insights on the Fed's challenges, highlighting risks from tariffs and the credit cycle looming over 2026. Meanwhile, Lisa Su, CEO of AMD, champions the case for open-source AI ecosystems, discussing how they can boost innovation and market accessibility. They also explore the rising demand for electricity related to AI and manufacturing, the need for nuclear power, and Macy’s bold strategy to revive the department store experience.
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Fed Cuts Unlikely If AI Boosts Growth
- Glenn Hubbard argues the Fed has little reason to cut rates given its own forecast of stronger GDP in 2026.
- He says AI-driven productivity, if real, would argue for higher real interest rates, not cuts.
AI's Labor Impact Is Uncertain
- Hubbard notes uncertainty whether AI will complement or substitute workers and that current labor weakness looks like post-COVID unwind.
- He frames job displacement as primarily a fiscal and training challenge, not just a Fed problem.
Avoid Broad Tariffs That Cripple Supply Chains
- Hubbard warns tariffs mainly harm long-run productivity and supply chains, not just transitory inflation.
- He urges caution about broad, across-the-board tariffs that hurt intermediate goods imports.