World Business Report Interest rates: Will the cuts help Americans?
5 snips
Dec 10, 2025 Michael Godlewski, owner of EYV Restaurant, shares the struggles of small businesses facing rising costs and tariffs. Susan Schmidt, a portfolio manager, delves into investor reactions to the Federal Reserve's rate cuts and their impacts on the market. Claudia Schwarm, a former Fed economist, discusses the timing and effects of these cuts on inflation and the labor market. Lastly, commodities trader Oli Hansen analyzes the surge in silver prices driven by industrial demand and market tightness.
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Rate Cuts Work Slowly
- Fed rate cuts take weeks to feed through to consumer borrowing and spending.
- Claudia Schwarm warns cuts help gradually but won't turn the economy on a dime.
Small Business Feels The Squeeze
- Michael Godlewski describes a restaurant hit by tariffs and falling consumer sentiment.
- He reports costs up ~6% and revenue about 6% down year‑on‑year, making this a challenging season.
Tariffs Keep Inflation Sticky
- Tariffs have pushed goods inflation higher even as services, notably housing, ease.
- Claudia Schwarm cautions inflation remains sticky, complicating further Fed cuts.