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Speaker 1: You've got the rates lowered a quarter point, gonna make

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Speaker 1: the markets happy. One would assume they were up yesterday.

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Speaker 1: They're up over two hundred in the pre market on

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Speaker 1: the down on the NASDAK. But if you're lowering the

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Speaker 1: rate a quarter point the federal funds rate, you're saying

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Speaker 1: the inflation is done, it's complete, it's set, it's settled

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Speaker 1: in Well, that's not true. This economy is weird, Tony Katz.

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Speaker 1: Doctor Mattwill joins as economist at the University of Indianapolis

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Speaker 1: of the pressure to cut was absolutely massive. The three

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Speaker 1: point three percent of GDP, the retail sales of being

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Speaker 1: up what we saw just for some more recent information

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Speaker 1: about producer price index stuff. But the inflation still exists.

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Speaker 1: So talk to me about the rationale and the reasoning

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Speaker 1: behind this quarter point cut.

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Speaker 2: Well, well, the rationale was pretty simple. It was one politics.

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Speaker 2: There was so much pressure on him to do this.

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Speaker 2: I mean, even the new FED chairman, you know, Steven Maron,

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Speaker 2: he was pushing for even a bigger cut. The other

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Speaker 2: FED representatives, they were pushing for cuts. The President was

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Speaker 2: you know, people on Wall Street, they love their low

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Speaker 2: rate drug and he had no choice. This was really

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Speaker 2: a political He had some backbone for a couple of months,

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Speaker 2: and now he's caved and he's not even lost his backbone.

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Speaker 2: Now he's making bad decisions across the board. So this

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Speaker 2: was just an embarrassing decision. He could have done a

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Speaker 2: bigger rate cut with some combined with some other decisions,

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Speaker 2: or he could have done no rate cut to fight inflation.

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Speaker 2: This guy doesn't know what he's doing. Jerome Powell needs

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Speaker 2: to go.

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Speaker 1: Well, I don't think you're gonna get disagreement from people

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Speaker 1: like say President Trump. But the quarter point conversation doesn't

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Speaker 1: seem like it's anything that makes anybody happy. It's not

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Speaker 1: making markets happy, doesn't make main Street happy, is certainly

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Speaker 1: not politically is it going to make anybody happy? The

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Speaker 1: new FED chair, not the FED chair, new member of

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Speaker 1: the Federal Reserve Miron wanted the half point. Everybody else

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Speaker 1: was agreed on the quarter point as we saw the

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Speaker 1: results of the vote. So why not go the step

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Speaker 1: to the half point and say, all right, you want

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Speaker 1: to let it ride, let it ride.

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Speaker 2: Well, he made a very specific statement in the statement.

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Speaker 2: Jerme Pal said he called it risk management because he

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Speaker 2: was nervous about okay, job stink at the moment, and

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Speaker 2: we've seen the job data. I mean, it's just it's

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Speaker 2: embarrassing how bad the job numbers are at the moment.

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Speaker 2: And then we still have this is very high inflation

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Speaker 2: four point eight percent. Remember I'm the take the current month,

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Speaker 2: multiply by twelve guy, and last month zero point four percent.

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Speaker 2: That's four point eight per the year. This is a

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Speaker 2: massive increase in inflation. So he is in a no

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Speaker 2: win situation. He wants to create jobs and he wants

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Speaker 2: to control inflation, so he would he'd had nothing, didn't

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Speaker 2: know what to do. But that's part of the problem here.

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Speaker 2: They have two mandates to create jobs and reduce inflation.

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Speaker 2: Those are contradictory mandates. They can the government can't create jobs.

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Speaker 2: This has got to stop, and they need to focus

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Speaker 2: only on inflation. The job part of it is bogus.

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Speaker 1: Talking to doctor Matt Will economists at the University of Indianapolis,

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Speaker 1: this brings us to the idea of inflation. I have

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Speaker 1: not seen anything that proves to me that inflation is

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Speaker 1: down in any way enough to cut rates. I know

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Speaker 1: people want it, and I get their point. I get

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Speaker 1: their argument. I'm willing to see what happens. But the

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Speaker 1: math tells me that if the inflation is not down,

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Speaker 1: that cutting rates puts more cash into a system and

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Speaker 1: the inflation persists. Are we about to see an upgrade

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Speaker 1: in inflation?

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Speaker 2: Yes, you know, I'm You always ask me to predict

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Speaker 2: and I refuse, but I'm predicting on this. It's not

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Speaker 2: just a prediction. The CPI was outrageous. The ism inflation

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Speaker 2: was outrage just the core PCE was outrageous. No, and

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Speaker 2: inflation is here and it's very strong. The economy is

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Speaker 2: still growing though. You know, this is where Trump deserved

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Speaker 2: a lot of credit. And the economy is three point

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Speaker 2: three percent up. But it's starting to be AI driven again.

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Speaker 2: You know you mentioned the market is up this morning.

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Speaker 2: It is up this morning, but it has nothing to

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Speaker 2: do with the rate cuts. When the rate cuts were announced,

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Speaker 2: the market state exactly flat. In fact, it was the

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Speaker 2: S and P went down and the Dow Jones went up.

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Speaker 2: There was nothing that impacted the market from the rate

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Speaker 2: cuts because it was as expected. What's driving the market

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Speaker 2: now is AI. Micron capital expenditures, broad coom ten billion

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Speaker 2: in new orders, and Vidia announced are investing in Intel.

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Speaker 1: So wait, you don't steal my thunder in video. The

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Speaker 1: chip maker is investing five billion in Intel after the

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Speaker 1: United States takes a ten percent stake in Intel, which

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Speaker 1: I vehemently oppose. But there's a real interesting question about

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Speaker 1: in Nvidia because that's been one of the stocks. You know,

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Speaker 1: we talked about last year and how the market did,

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Speaker 1: and there are basically these seven stocks AI stocks that

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Speaker 1: lifted the rest of the market. In Video was one

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Speaker 1: of those, as you discussed on Tony Kats today very

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Speaker 1: often talking to doctor Matt Will, economists at the University

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Speaker 1: of Indianapolis. Dr Matt Will on the Twitter X find

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Speaker 1: him there. Then do we hear that China is saying,

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Speaker 1: don't buy in Vidia chips, don't engage with Nvidia. We

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Speaker 1: don't want Chinese companies doing anything within Nvidia. But you

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Speaker 1: already had the allowance from the Trump administration for Nvidia

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Speaker 1: to celt chips in China, to which China would reverse

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Speaker 1: engineer the chips, steal the intellectual property, and then screw

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Speaker 1: in Vidia by putting out a lower cost chip. Now

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Speaker 1: China's saying don't even use it. What is happening here?

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Speaker 2: What's happening in this politics? This is where you know,

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Speaker 2: I'm one hundred percent on board with your analysis is

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Speaker 2: Trump shouldn't be investing in Intel. I think I think

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Speaker 2: Nvidia is investing in tel for two reasons. One is

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Speaker 2: there's excess capacity. It's a loser company. They can't make

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Speaker 2: any chips. Nobody's buying their chips, so they're saying, hey,

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Speaker 2: there's excess capacity, we need capacity, we're short of capacity.

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Speaker 2: We'll just buy some factories. We'll invest in factories and

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Speaker 2: they'll make our chips. The other part is politics. You

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Speaker 2: know now that Trump is invested in Nvidia, he's an owner. Well, hey,

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Speaker 2: I'm Nvidia, I mean in Intel. He's investing in Intel.

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Speaker 2: So Nvidia is going to jump in and be happy

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Speaker 2: with Trump. Isn't that what everybody wants to do. They

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Speaker 2: want to make Trump their best friend. The King of

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Speaker 2: England wants to make them his best friend. So it's

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Speaker 2: just politics being involved here. And you're right, you're right.

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Speaker 2: China has Nvidia chips. They now have, you know, bought

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Speaker 2: a whole bunch of them, and they're saying, get lost.

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Speaker 2: We're going to invent these ourselves. We'll reverse engineering and

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Speaker 2: we'll do it ourselves.

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Speaker 1: Bye bye, I mean that's that's exactly what they're going

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Speaker 1: to do. The investment of five billion into Intel. Does

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Speaker 1: it change the fact that Intel has been a pretty

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Speaker 1: lousy company.

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Speaker 2: Does it change? Do you mean does it make them

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Speaker 2: into a good company. Yeah, no, it doesn't make them

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Speaker 2: into a good company. But they're just buying capacity and

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Speaker 2: videos just buying capacity. There's such a demand for their chips.

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Speaker 2: So a good example, Broadcom got a ten billion dollar

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Speaker 2: order for AI chips. That's one of their competitors a

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Speaker 2: ten billion dollar order. En Vidia is sitting around thinking

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Speaker 2: we should have that order. Why didn't we get that order?

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Speaker 2: We need more factories. So they're just buying Intel because

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Speaker 2: Intel's got lots of excess capacity. That's it's just a

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Speaker 2: good business decision.

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Speaker 1: Talking to doctor Matt Well, economist at the University of Indianapolis.

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Speaker 1: One other question here, and this is one about American Express.

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Speaker 1: It was a story on CNBC. It's a very interesting story.

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Speaker 1: This is the headline. American Express unveils refreshed Platinum card

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Speaker 1: with eight hundred and ninety five dollars annual fee, upping

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Speaker 1: the anti in luxury cards. Now full disclosure, I have

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Speaker 1: a Platinum card. It is a six hundred and ninety

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Speaker 1: five dollars annual fee. This has now been raised, but

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Speaker 1: they're going to give you all sorts of benefits. There's

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Speaker 1: an argument that's often made that in this economy, the

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Speaker 1: rich are getting richer and the poorer getting poorer. Is

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Speaker 1: that this is Amex saying, well, you are already part

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Speaker 1: of the luxury brand. Let us make it even more

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Speaker 1: luxury by costing even more, so you'll feel more excitement

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Speaker 1: about your luxury card. Is this what we're seeing? Is

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Speaker 1: this an example of Hey, if the richer getting richer,

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Speaker 1: might as well get a couple extra bucks.

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Speaker 2: Okay, first of all, it's not the rich getting richer.

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Speaker 2: The wealth gap is a fake phenomenon. It's fake news,

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Speaker 2: as we say. But what is happening is a full disclosure.

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Speaker 2: I have the high end AMEX cards also. I got

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Speaker 2: two of them, and I got to tell you what

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Speaker 2: they've learned is that that market when you and I, Tony,

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Speaker 2: when I add up the benefits I get. I mean

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Speaker 2: I showed someone the other day who wants to get

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Speaker 2: a new credit card. I said, look at the benefits

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Speaker 2: I'm getting. And this is not a commercial for a mix. Please.

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Speaker 2: I showed them. I was get in about six thousand

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Speaker 2: dollars a year in AMEX benefits. You know what, they

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Speaker 2: could probably afford to charge me a little bit more

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Speaker 2: and I'll probably suck it up and pay for it.

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Speaker 1: Also, I am not doing an ad for Amex, but

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Speaker 1: if they wanted to be advertisers, this will be the

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Speaker 1: right place to do it. I'd be a fantastic MX spokesperson.

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Speaker 1: Really nothing, no, no, no backing me up there, doctor Will.

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Speaker 2: I am one hundred percent on board. I mean it's embarrassing.

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Speaker 2: I don't want to be a shill, but I love

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Speaker 2: my AMEX card. I get so many benefits. I get

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Speaker 2: two free global round trip airfares in first class off

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Speaker 2: of my AMEX card. This is an impressive card. I

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Speaker 2: really like it.

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Speaker 1: We will talk more about all of your perks. The

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Speaker 1: chatroom wants to know why the wealth gap is fake,

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Speaker 1: but we will have to discuss that at another time.

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Speaker 1: Doctor Matt will Economists, University of Indianapolis. Dr Matt will

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Speaker 1: Wil on the Twitter X more coming up. This is

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Speaker 1: Tony Katz today