Marketplace All-in-One Concerned consumers keep on spending
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Aug 15, 2025 Greg Ipp from The Wall Street Journal shares insights on inflation and the evolving nature of American capitalism, while Rachel Siegel from The Washington Post discusses the impact of rising prices on consumers. They delve into the paradox of increased retail sales alongside declining consumer sentiment and cautious spending behaviors. The conversation touches on how tariffs affect prices, the challenges of wealth taxation, and the financial struggles facing nonprofit arts organizations due to recent funding cuts.
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Inflation Is Rebounding, Complicating Fed Cuts
- Inflation has stopped falling and is drifting back up toward ~3%, complicating Fed rate-cut plans.
- The Fed may delay or limit cuts because higher inflation conflicts with supporting the labor market.
Tariffs' Costs Will Eventually Hit Consumers
- Companies can only absorb higher costs for so long before raising prices or changing suppliers.
- Tariffs' full effects may take months to show as businesses adapt sourcing and pricing decisions.
Market Rally Driven By Tech, Not Broad Strength
- Stock-market gains are concentrated in a handful of tech/AI names, not the whole economy.
- Investors treat weak economic data as a reason to expect Fed cuts, making bad news temporarily bullish for stocks.