“I fully expect, though, about a 1% cut by the end of the year.” – 01:25

David Stryzewski, CEO of Sound Planning Group, joins Remy Blaire to discuss the current economic landscape and the implications of the Federal Reserve’s upcoming decisions on interest rates.

The segment opens with a discussion about the Fed’s potential rate cut, with Fed funds futures indicating a 79.2% chance of a cut in September. David explains that recent economic data, particularly regarding wholesale prices, suggests that inflation pressures are building, which may lead to a pause in rate hikes for the time being. He anticipates a 25 basis point cut soon, with a total of about a 1% cut expected by the end of the year, especially as challenging economic data is anticipated in the coming months.

As the conversation shifts to the equity markets, David notes the recent pullback in big tech stocks, despite the market hovering near all-time highs. He emphasizes that while big tech will continue to lead, other sectors, particularly metal mining, are poised for growth due to their essential role in AI and data centers. David highlights the importance of semiconductors and metals like silver in the ongoing technological evolution, suggesting that these sectors may see significant gains.

The discussion then moves to the bond market, where David expresses concerns about the junk bond sector. He warns that rising interest rates make it increasingly difficult for less creditworthy companies to survive, and he cautions listeners that bonds can be volatile and can lose value in multiple ways. He encourages consideration of alternative investments to mitigate risks.

“We do believe that we’re going to see a little bit of a pullback. We’re actually anticipating that.” – 01:31

Ed Siddell, President & CEO of EGSI Financial, joins Remy Blaire to discuss the high-stakes environment surrounding Federal Reserve Chair Jay Powell as he prepares for his pivotal speech at the Jackson Hole Economic Symposium. With increasing pressure from former President Trump and dissent within the Federal Reserve, the stakes are higher than ever. The pair discuss the implications of Trump’s nominee, Steven Moran, who advocates for rate cuts and greater presidential influence over the Fed. If confirmed, Moran could join two existing dissenters, marking a significant shift in the Fed’s dynamics since 1988.

Ed shares his insights on the current market expectations regarding interest rate cuts. Ed expresses skepticism about the market’s anticipation of a 100 basis point cut, suggesting that a more realistic expectation would be a 50 basis point reduction. He believes that the market has already priced in this possibility and anticipates a negative reaction to Powell’s speech, which he expects to be pessimistic.

Ed argues that the Fed may be placing too much emphasis on employment figures while overlooking disinflationary trends, particularly the declining costs of energy. He emphasizes that the current inflation levels are lower than perceived, and the impact of tariffs is not as significant as some may think.

“I would expect the central bank probably to cut.” – 02:07

Matt Cheslock, Equity Trader at Virtu Financial, joins Remy Blaire at the New York Stock Exchange to discuss the current state of the retail market and the implications of upcoming monetary policy decisions. With a significant week for retail earnings upon us, we focus on how American consumers are spending and the broader economic landscape. The annual Fed Reserve Symposium in Wyoming is on the horizon, and we anticipate the release of the Fed Minutes from the July meeting, which could provide insights into future monetary policy.

Matt shares his expertise on the recent market movements. The pair discuss the recent pullback in big tech stocks and the implications for the retail sector, particularly in light of Target’s pre-market shares dropping by about 10% following its latest earnings report. Matt highlights the volatility in the market, suggesting that we may be witnessing a shift in investor sentiment as they react to earnings results.

Matt speculates that a quarter-point rate cut is likely, given the current economic indicators and political influences. He notes that a significant majority of market respondents expect this cut, which could further shape the market dynamics.