Labor market was in very solid condition with strong job creation and all those things.
I think if you start, go back to April and now look at the revised job creation numbers for for May, June, July and August.
You can kind of, I can no longer say that.
So what that means is that the risks which the risks were clearly tilted toward inflation, I would say they're moving toward, toward equality.
Maybe they're not quite out of equality.
We don't need to know that, but we got, we do know that they've moved meaningfully toward greater equality, the risks between the two goals, and that suggests that we should be moving in the direction of neutral, and that's what we did today.
Well, Fed Chair Jay Powell expressing more caution over the labor market as the central bank cut rates for the first time in 9 months.
While inflation remains elevated.
Powell justifying the Fed's decision of cutting by 25 basis points to weak labor market data over the past few months.
Well joining me here at the New York Stock Exchange is Gabby Vespi, CEO and founder of Latino Wall Street.
Gaby, great to have you here.
Thank you so much for joining me.
Oh, thank you for having me.
Well, just like your jacket, we are looking at markets.
Turning green.
Dow, Nasdaq, S&P 500 higher.
So what did you make of the market reaction, not just today but also immediately afterwards?
And what do you expect moving forward from the Fed?
Yes, it was very interesting what happened yesterday.
I was monitoring Powell's speech and in the beginning when it was confirmed, you know, we saw it all over the headlines that we were cutting interest rates.
It was great news.
The market was up, but as soon as he started talking, we didn't know all those things he was going.
To share with us about the economy and the labor market and inflation and tariffs.
So I think what scared the markets was what Powell said.
But now that we're seeing so much innovation with Nvidia and Intel and those big news, the billion dollar contract, and we know the US government has contracts with both, and we do have a projection we'll continue cutting interest rates for the rest of the year.
I think it's great news.
I I think the market is going to be mostly bullish.
However, it's not going to be a perfect straight line.
It never is.
We will have a lot of volatility and retracements, of course, because people, when they see a, you know, historic high, then they of course want to secure those games, right?
Yeah, and I'm glad you brought up Nvidia because we've been watching shows of Nvidia as well as Intel this morning, and this does come on the heels of Trump's trip to the UK.
He did.
Announced that there are a lot of deals, not just Fintech but also energy as well, but Intel rallying by double digit percentage points after Nvidia announced the $5 billion investment to the company.
So what do you make of this partnership and deal?
Look, I don't think it's a coincidence.
I think very recently we all witnessed that the US government bought a piece of Intel.
It was an acquisition.
So actually the US government is one of the main beneficiaries of Of this huge spike because they have a percentage of intel about 10% I believe.
So the fact that the US government.
I think it had to know because don't forget they also have a contract with Nvidia and they're also waiving some tariffs because they've negotiated things that are supposedly a win-win for both, but I think now that we're seeing these two giants unite and the US government is benefiting, it makes you think, right, this had to be the plan all along that maybe we didn't quite understand when it was originally announced the government has a piece that was very controversial.
What are we doing here?
But now that it's up 30%.
I think we know what they were doing, so I think we're getting answers as time goes by.
And Gaby, finally, before I let you go, we're watching the price of gold after it cleared 3700 and hitting record highs.
And interestingly, when we're looking at crypto, we're seeing mostly range bound trading, but what do you make of the commodities reaction and what is your outlook?
Yes, so gold is always going to be the inflation hedge, right, since the beginning of the time since we had King.
Gold has been the inflation hedge.
So anytime we have a change in monetary policy that you know we're getting interest rates cut, the projections more interest rate cuts, that just means that demand will go up because it'll be cheaper to borrow money, which makes the fears of inflation go up as Powell admitted.
He said we're going to get to our goal of 2% inflation in 2028.
Are you kidding?
I think that was not good news for anyone, let alone for the market.
So I think people will find themselves going to gold.
I think it's the beginning actually of the rally.
I don't think it's near its end because of inflation.
And finally, before I let you go, what did you make of the crypto reaction and do you see Bitcoin going higher?
So I do say going higher.
They actually just put a statue of at the Capitol.
Of Trump with a Bitcoin, that is brand new, it's like a golden statue that's a clear symbol.
The US stands with Bitcoin.
They have money invested, you know, Trump, his family, and the government, so they are pro Bitcoin.
They passed pro-itcoin legislation, so I think it has a bright future.
However, that's for a more high risk profile, right?
Gold is more for a conservative risk, but if you want a higher risk and Possibly bigger returns that will be your choice to protect you from the inflation that we know it's a little bit, you know, under control, but unfortunately with interest rates, that's the catch.
We might get more inflation and people will find themselves going to go to Bitcoin.
It'll depend on your tolerance risk, but I do see a bright future for Bitcoin.
OK, Gaby, always great talking to you.
Thank you so much for joining me here at the New York Stock Exchange.
Thank you so much.
Thank you.
