“Wall Street’s been positioned for this incorrectly. They’ve been way too negative.” – 02:38
Michael Landsberg, CIO of Landsberg Bennett, joins Remy Blaire on the trading floor of the New York Stock Exchange to discuss the current state of the economy following the recent Federal Reserve meeting. Activity in the housing sector remains weak, and the pair discuss the implications of the Fed’s decision to cut interest rates by 25 basis points, as well as Fed Chair Jay Powell’s cautious outlook on future rate cuts.
Michael explores the market’s reaction to the Fed’s announcement, particularly the decline in high-flying tech stocks like NVIDIA, Oracle, Palantir, and Broadcom, while Intel’s shares surged after NVIDIA announced a $5 billion investment in the company.
Michael shares his insights on Powell’s statements regarding risk management and inflation, emphasizing that while there is pressure for further rate cuts, the Fed may adopt a wait-and-see approach based on upcoming economic data. Michael and Remy discuss the importance of the labor market, inflation metrics, and the upcoming GDP revision, durable goods data, and PCE figures, which will be critical in shaping the Fed’s decisions moving forward.
They also analyze the surprisingly strong retail sales figures and what they mean for consumer spending and GDP growth. Michael points out that the American consumer often defies expectations, spending even when it seems counterintuitive. He highlights that companies have managed to keep prices in check despite tariffs, which has positively impacted earnings.