

Fed Holds and Big Tech Beats; US-South Korea Trade Deal
5 snips Jul 31, 2025
Dean Smith, Chief Strategist at FolioBeyond, shares insights on the strong earnings of tech giants like Microsoft and Meta, which fuel optimism in U.S. markets. He discusses the Federal Reserve's decision to hold interest rates steady and its impact on equity indexes. Additionally, they delve into the recent U.S.-South Korea trade agreement, involving a 15% tariff and significant investments. The conversation emphasizes the complexities of navigating market fluctuations and potential strategies for conservative investors.
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Fed Holds Rates Amid Solid Economy
- The Fed held rates steady due to solid economic conditions and inflation above target.
- Full employment and financial market stability reduce the need for immediate rate cuts.
Tariffs Delay Inflation Impact
- Tariff impacts take time to flow through supply chains and show up in prices.
- Initial effects are seen but full inflationary impacts may appear later this year or next year.
Skepticism on Trade Deal Promises
- Announced LNG export deals to Korea and EU exceed current US production capacity.
- Foreign direct investment announcements mostly reflect existing economic trends rather than new flows.