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How Tariffs Are Reshaping Fed Rate Decisions
Season 1
Episode 14
Published 1 month, 2 weeks ago
Description
Lucas and Luna examine how the escalating trade war and Iran conflict are complicating the Fed's inflation fight. With core CPI at 335.4 and the ten-year breakeven rate at 2.40%, the bond market is signaling persistent price pressures. The hosts dissect why Chair Kevin Warsh is stuck at 3.64% while tariffs and supply shocks are creating a 'stagflation-lite' scenario. They also explore the divergence between the Russell 2000's 6.3% weekly surge and the S&P 500's more muted gains, asking whether small caps are hedging against tariff risks or just chasing a fleeting rotation.