Eurodollar University

McDonald’s Just Slashed Prices…The Economy is DONE

Aug 22, 2025
A surprising twist erupts as McDonald's announces combo meal price cuts on the same day the FOMC warns about inflation dangers. The conversation dives into economic disparities, revealing a disconnect between the Fed's hawkish narrative and real consumer struggles. As labor market weaknesses loom, potential interest rate cuts could be on the horizon. The podcast also introduces the innovative concept of earning gold yields, turning your idle gold into a monthly income. It's a fascinating look at current economic realities!
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INSIGHT

McDonald's Price Cuts Signal Demand Weakness

  • McDonald's cutting combo prices is a clear sign of downward consumer pressure rather than rising inflation.
  • Price cuts by a low-cost chain reveal demand weakness that conflicts with a 'solid' labor-market narrative.
ANECDOTE

McDonald's App Push And McValue Menu

  • McDonald's reported customers were skipping breakfast and rolled out a McValue menu and app deals to boost traffic.
  • Those tactics aimed to drive app use and reduce labor costs, showing how retailers respond to weaker spending.
INSIGHT

Promotions Show Firms Losing Pricing Power

  • Rising use of app deals and buy-one-add-one offers reflect firms trying to preserve volume amid cost pressures.
  • These tactics show companies cutting pricing power because customers lack sufficient income.
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