The Market and Fed Chair Powell

Motley Fool Money

The Motley Fool

Business, Investing

4.4 • 3K Ratings

🗓️ 21 April 2025

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

Fed independence brings stability, and markets love stability. (00:21) Asit Sharma and Dylan Lewis discuss: - The Trump Administration’s focus on Fed Chair Jerome Powell. - The role of an independent Federal Reserve Bank for the market and investors. - Netflix’s earnings and status as a “recession-proof” stock. (16:23) Anand Chokkavelu hosts Fool Contributors Dan Caplinger and Rick Munarriz for a Scoreboard episode on Shopify. To become a premium Motley Fool member and gain access to all Scoreboard episodes, go to www.fool.com/signup. Companies discussed: NFLX, SHOP, AMZN Host: Dylan Lewis Guests: Anand Chokkavelu, Dan Caplinger, Rick Munarriz Producer: Ricky Mulvey Engineer: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	All eyes on Fed Chair Powell.
0:06.6	Motleyful money starts now.
0:24.2	I'm Dylan, Mottley Fool analyst Asset Sharma.
0:25.5	Asit, thanks for joining me.
0:26.8	Dylan, happy Monday.
0:28.8	Happy Monday for some.
0:31.0	For some, it is a bit of a down Monday.
0:33.5	Rough start for the market this week. We see S&P 500, NASDAQ investors processing some commentary on the macro picture from the Trump
0:40.1	administration with them setting their sights on Fed Chair Powell. Seems like the administration
0:46.1	would like to see someone else sitting in the Fed chair seat. Osset, what is the tension here?
0:52.2	So, Dylan, the tension is that President Trump really wants lower interest rates.
0:56.5	He's been an advocate for this, not just in this administration, but the past administration.
1:01.4	President Trump feels that low interest rates spur economic activity, and they're good for
1:05.8	the stock market.
1:07.8	Generally, investors like lower interest rates in many scenarios.
1:11.6	So he's a very vocal advocate for this, but the time that we're in just now is one that
1:17.6	Jerome Powell, the chairman of the Federal Reserve and many Fed governors, believe is one where we
1:25.6	have to be very careful about lowering interest rates. As you know, we've had a high interest rate, high inflation environment in the U.S.
1:32.9	And so one of the things you want to be careful of is backing off interest rates too soon.
1:37.8	If you lower interest rates too soon in a highly inflationary environment, well, inflation can increase.
1:43.4	And that's not good for the markets. It's not good for the Fed's mandate, which is to keep inflationary environment, well, inflation can increase. And that's not good for the markets.
1:44.8	It's not good for the Fed's mandate, which is to keep inflation around 2%, so keep a steady
	...

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