Closing Bell Closing Bell 7/16/25
Jul 16, 2025
Roger Altman, former Deputy Treasury Secretary and founder of Evercore, dives into the complexities of the Federal Reserve's independence and leadership amid political pressures. He discusses the surprising economic resilience, despite high tariff rates, and analyzes recent banking earnings showing record revenues. Altman also sheds light on shifting strategies in banking with potential regulatory changes, and highlights the growing tech sector, driven by massive investments in AI, which are poised to reshape market dynamics.
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Risks of Firing Fed Chair
- Firing Fed Chair Powell would break central bank independence, damaging economic performance.
- Independent central banks lead to better market confidence and economic outcomes than politicized ones.
Motives Behind Fed Chair Tensions
- The renovation overrun claim likely serves as a pretext for firing Powell.
- Trump primarily seeks lower interest rates to reduce U.S. government costs, conflicting with the Fed's legal mandate.
Market Rebound May Need Digestion
- Despite stock rallies, the market may be entering a digestion period after a sharp rebound.
- International investors remain skittish about U.S. equity valuations and tariff-related uncertainties.