July 10, 2025 • 9 mins
Trump demands 3% interest rate cut; announces 50% tariff on Brazil
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Left the house this morning around I don't know, about
ten after four, and I saw all the critters. I
don't know why what was going on. But within about
a minute and a half of pulling out of my driveway,
I saw a raccoon, a possum, and a skunk. Sounds
like the setup to a joke. I saw a raccoon
(00:20):
right away. Then I saw a possum, and those are
just creepy looking. He was just kind of he scurried
down into a sewer. And I know possums are good
because they eat bugs, but they're just creepy looking with
the tail and their face and their beady little eyes.
And then I saw a skunk as I turned a
corner to get on the bigger road, and it's like,
(00:42):
what is going on? I guess I rather see a
skunk than smell a skunk, but I don't know. Maybe
it was the full moon last night, but all that
I didn't see a rabbit, and there's been a lot
of rabbits out there as well. So the the holy
trinity of the raccoon, possum, and a skunk this morning
on the way, and so I don't know what's going on,
but let's go over to the Legacy Retirement Group dot
(01:05):
com phone line and say good morning to our capitalist pig,
Jonathan Honig. Jonathan, it was a pretty good day on
the market yesterday.
Speaker 2 (01:15):
Kunks, not kunks at all, Mike, nothing smelly on Wall Street.
Only all time highs. In fact, in video, which we've
been talking about for months. You know, this stock is
up sixty eight percent since April. It rose yesterday for
the first time any company with four trillion dollars. The
idea briefly touched at court now didn't. It ended a
little below that level, but the market was hired yesterday
(01:37):
as people just in awe that AI continues to dominate
investor attention and video. As I've had almost seventy percent
just since April. A lot of that. Of course, in April,
if you remember, we were down at one point fifteen percent.
That had to do President Trump and the tariff threats
that he made. Well he's kind of added again it's
time not so much with tariffs, however, Mike, with interest rates.
(01:58):
He is publicly urging Jerome Powell that is a Federal
Reserve share to cut rates by way for it three
hundred basis points that's three percent. Now, if he did that,
that would be three times larger than the largest cut ever,
which was one percent. So Trump is not letting up
on Jerome Powell. He's saying, look, you got to cut rates,
cut them now. Inflation is down, the economy is strong,
(02:21):
and he's letting the Fed chairman know.
Speaker 1 (02:23):
I think it's probably a classic case of negotiation. I mean,
you ask for more than what you actually want. I mean,
three percent will never happen, but President will probably be
be happy if the Fed cut it by one percent.
And I think they're scheduled to meet here in a
couple of weeks.
Speaker 2 (02:39):
Exactly right, and twenty one days we'll get that next
FOMC meeting. And as you know, we talk about all
the time, like a little bit of interest rate change,
it really does make a big difference over a long
period of time. Right now, the estimation is that there's
going to be no change in rates. That's only about
about a ninety one percent chance according to markets, that
a resert will stand pat So Trump, at least for now,
(03:00):
doesn't look like he's going to get his way. But
you know, of course, it's all about the economic data
and a lot of that continues to come out, not
just about inflation, but about sales as well. And you know,
Amazon is in the midst like of their Prime Day,
it's actually Prime Days now, And there was a little
bit of worrisome news out yesterday Momentum Commerce that is
an online shopping estimates and their research firm. They are
(03:23):
reporting that Amazon had a forty one percent plunge in
sales compared to last day's first day events. So some
earlier readings on Prime Days that perhaps maybe the you know,
consumers are hanging on to their cash. There's not spending
as much as they did, so it might be a
little bit of a worrisome sign if investors aren't lining
up for Prime Day.
Speaker 1 (03:43):
Yeah, and maybe we're just kind of getting Prime daid
out that you know, this happens every year now, as
you pointed out, it's multiple days. Plus you've got Walmart
and Target and it's just this constant barrage of by
by save Save, and people I think are just fatigued
from all of this and they're like, you know what,
I don't really need any of this garbage. This is
(04:03):
stuff I don't really need, so I'm going to hang
on to my cash.
Speaker 3 (04:05):
Right now.
Speaker 2 (04:06):
It's a great observation. I get a lot of other
companies have kind of cashed in on the prime day
of fervor, and you're right, what used to be seeing
is kind of a special short term period. Now we're
talking about a sale that lasts well four days, and
of course, as you said, Walmart, Cosco, a lot of
other shoppers getting in there. But isn't that the great
thing about American and the capitalism. You've got companies falling
(04:27):
over themselves to try to give you a good deal.
And that's despite the fact that a lot of tariffs
and tariffs are taxes are going up. You know, President
Trump yesterday Brett and he actually announced a fifty percent
tax on imports from Brazil that stuff from ten percent,
and he said it at about twenty one new letters
to companies. He's had to countries like the Philippines, Moldolovia,
(04:49):
all trying to kind of work on and hammer out
those trade deals that thus far have been pretty elusive
for the president.
Speaker 3 (04:54):
And these are all set to take place August first.
Speaker 1 (04:57):
I don't want to freak anybody out where these aren't
as effective immediately. It's my understanding because the April tariffs
were paused and now they're set to kick back in
and these are just getting these restarted here in a
couple of weeks.
Speaker 2 (05:09):
And let's hope that this is the negotiation tactics that
were so much about, because in fact, some prices are
going up. And we have talked about this, we talk
about how the rate of inflations come down, but you know,
most Americans still feel like things are cost too much
in factor going up. HBS Pricing Lab that's the Harvest
Business School. They actually analyzed over three hundred and thirty
(05:30):
thousand products and they found that from March to June,
prices are up about three percent. That's for imported goods.
For domestic goods up about two percent. So even in
the last you know, four or five months, prices continue
to go up in America.
Speaker 1 (05:45):
Also going up is a Bitcoin hit a new record yesterday.
I think this was a kind of tied to the
Nvidia rally. What is bitcoin at right now?
Speaker 2 (05:54):
Over one hundred and twelve thousand dollars a coin? And
Mike count me among those so called experts who really
missed the boat on this one. If you're like me,
you said, well, what the heck do I do with
the bitcoin? Let's end, two percent of people who own
it used it as currency. But you're absolutely right, new
all time high one hundred and twelve thousand dollars a coin.
It had been in kind of a tight range for
(06:15):
several weeks, and you know, the word on the street,
mic now is if this is seen as a legitimate
store of value, and more and more you have, you know,
well known financial advisors coming out saying maybe it is
time to make bitcoin part of a portfolio. So not advice,
just observation. All time high for bitcoin and a lot
of those technology related names.
Speaker 3 (06:33):
But you're right. I mean, I'm I'm right there with you.
Speaker 1 (06:35):
If you know you would have told me when bitcoin
was one thousand dollars, I would have been like.
Speaker 3 (06:40):
I'm not spend that's I don't even know what this is.
Speaker 1 (06:42):
I can't go in buy a gallon of milk and
a loaf of breade with bitcoin. I don't really understand it.
So I'm gonna wait this one out. But if I
if we had gotten in on bitcoin at one thousand dollars, Jonathan,
we'd be loving life right now.
Speaker 2 (06:54):
This is my life, Mike, would this is this is
a story in my life. But you know, we have
talked a lot about AI and the tremendous advancements in
that and actually an interesting story out yesterday. Microsoft is
saving tremendous money. They racked up about a five hundred
million dollars in savings using AI and way for it
(07:15):
flashing jobs. This is primarily in the customer service and
the call centers, et cetera. Basically Muff saying we're saving
a lot of money because we're firing employees and replacing
them with AI. So kind of a sobering notes this morning, Mike.
You know, we're celebrating the advancements of AI, but you know,
the American workforce is going to look a lot different
in ten years than it does now.
Speaker 1 (07:35):
Yeah. I hope that's not the case. And I'm predicting
an AI backlash at some point that people are going
to get so sick of everything being so perfect and flawless.
Whether it's you know, the voices you hear on the
other end of the phone, or whether it's graphics online
or some sort of writing, it's people are going to
start craving. They're going to start craving authentic authenticity. They're
(07:56):
going to crave imperfection because AI is so smooth and
so perfect that eventually we're going to go, you know,
we want authentic experiences. So I hope we're wrong on that,
but for now AI is certainly a boy.
Speaker 3 (08:09):
We just look at Nvidia. That tells the entire story.
Speaker 1 (08:12):
Speaking with johnthanhone capitalistpig dot Com a story here locally
in Ohio, Jonathan is state is giving three hundred and
ten million dollars to defense Contractor andrel.
Speaker 2 (08:24):
Yeah, and this is going to really to help propel
supposedly help propel you know, Ohio. Even further, my defense
contractor and Reial Industries. They've been given a three hundred
and ten million grants from Ohio's Job Creation Office. Basically,
this is a thirty year economic development deal and they're
calling for the company to create over four thousand new jobs,
(08:45):
five hundred million dollars in new payroll, and they're going
to make almost a billion dollars in capital investments over
the ten years. And I'll tell you this is producing
something that to my knowledge, AI can't do, which is
military drones and economous air vehicles. So it's just great
to se he might despite you know, some hiring worries
around the rest of the country. Central Ohio and Columbus
(09:06):
continually to power forward. In my opinion, it's because of
the spirit of the people there and the American spirits
that they embodied. So great to see Columbus continuing to
having the success, new jobs on the.
Speaker 1 (09:17):
Way, great info as always, more information there in about
eight or nine minutes than you're gonna hear anyone else
all day. If you have any personal finance questions, reach
out to Jonathan capitalistpig dot com.
Speaker 3 (09:28):
Mister Honig. Thank you for at the time. We'll talk
again next week.
Left the house this morning around I don't know, about
ten after four, and I saw all the critters. I
don't know why what was going on. But within about
a minute and a half of pulling out of my driveway,
I saw a raccoon, a possum, and a skunk. Sounds
like the setup to a joke. I saw a raccoon
(00:20):
right away. Then I saw a possum, and those are
just creepy looking. He was just kind of he scurried
down into a sewer. And I know possums are good
because they eat bugs, but they're just creepy looking with
the tail and their face and their beady little eyes.
And then I saw a skunk as I turned a
corner to get on the bigger road, and it's like,
(00:42):
what is going on? I guess I rather see a
skunk than smell a skunk, but I don't know. Maybe
it was the full moon last night, but all that
I didn't see a rabbit, and there's been a lot
of rabbits out there as well. So the the holy
trinity of the raccoon, possum, and a skunk this morning
on the way, and so I don't know what's going on,
but let's go over to the Legacy Retirement Group dot
(01:05):
com phone line and say good morning to our capitalist pig,
Jonathan Honig. Jonathan, it was a pretty good day on
the market yesterday.
Speaker 2 (01:15):
Kunks, not kunks at all, Mike, nothing smelly on Wall Street.
Only all time highs. In fact, in video, which we've
been talking about for months. You know, this stock is
up sixty eight percent since April. It rose yesterday for
the first time any company with four trillion dollars. The
idea briefly touched at court now didn't. It ended a
little below that level, but the market was hired yesterday
(01:37):
as people just in awe that AI continues to dominate
investor attention and video. As I've had almost seventy percent
just since April. A lot of that. Of course, in April,
if you remember, we were down at one point fifteen percent.
That had to do President Trump and the tariff threats
that he made. Well he's kind of added again it's
time not so much with tariffs, however, Mike, with interest rates.
(01:58):
He is publicly urging Jerome Powell that is a Federal
Reserve share to cut rates by way for it three
hundred basis points that's three percent. Now, if he did that,
that would be three times larger than the largest cut ever,
which was one percent. So Trump is not letting up
on Jerome Powell. He's saying, look, you got to cut rates,
cut them now. Inflation is down, the economy is strong,
(02:21):
and he's letting the Fed chairman know.
Speaker 1 (02:23):
I think it's probably a classic case of negotiation. I mean,
you ask for more than what you actually want. I mean,
three percent will never happen, but President will probably be
be happy if the Fed cut it by one percent.
And I think they're scheduled to meet here in a
couple of weeks.
Speaker 2 (02:39):
Exactly right, and twenty one days we'll get that next
FOMC meeting. And as you know, we talk about all
the time, like a little bit of interest rate change,
it really does make a big difference over a long
period of time. Right now, the estimation is that there's
going to be no change in rates. That's only about
about a ninety one percent chance according to markets, that
a resert will stand pat So Trump, at least for now,
(03:00):
doesn't look like he's going to get his way. But
you know, of course, it's all about the economic data
and a lot of that continues to come out, not
just about inflation, but about sales as well. And you know,
Amazon is in the midst like of their Prime Day,
it's actually Prime Days now, And there was a little
bit of worrisome news out yesterday Momentum Commerce that is
an online shopping estimates and their research firm. They are
(03:23):
reporting that Amazon had a forty one percent plunge in
sales compared to last day's first day events. So some
earlier readings on Prime Days that perhaps maybe the you know,
consumers are hanging on to their cash. There's not spending
as much as they did, so it might be a
little bit of a worrisome sign if investors aren't lining
up for Prime Day.
Speaker 1 (03:43):
Yeah, and maybe we're just kind of getting Prime daid
out that you know, this happens every year now, as
you pointed out, it's multiple days. Plus you've got Walmart
and Target and it's just this constant barrage of by
by save Save, and people I think are just fatigued
from all of this and they're like, you know what,
I don't really need any of this garbage. This is
(04:03):
stuff I don't really need, so I'm going to hang
on to my cash.
Speaker 3 (04:05):
Right now.
Speaker 2 (04:06):
It's a great observation. I get a lot of other
companies have kind of cashed in on the prime day
of fervor, and you're right, what used to be seeing
is kind of a special short term period. Now we're
talking about a sale that lasts well four days, and
of course, as you said, Walmart, Cosco, a lot of
other shoppers getting in there. But isn't that the great
thing about American and the capitalism. You've got companies falling
(04:27):
over themselves to try to give you a good deal.
And that's despite the fact that a lot of tariffs
and tariffs are taxes are going up. You know, President
Trump yesterday Brett and he actually announced a fifty percent
tax on imports from Brazil that stuff from ten percent,
and he said it at about twenty one new letters
to companies. He's had to countries like the Philippines, Moldolovia,
(04:49):
all trying to kind of work on and hammer out
those trade deals that thus far have been pretty elusive
for the president.
Speaker 3 (04:54):
And these are all set to take place August first.
Speaker 1 (04:57):
I don't want to freak anybody out where these aren't
as effective immediately. It's my understanding because the April tariffs
were paused and now they're set to kick back in
and these are just getting these restarted here in a
couple of weeks.
Speaker 2 (05:09):
And let's hope that this is the negotiation tactics that
were so much about, because in fact, some prices are
going up. And we have talked about this, we talk
about how the rate of inflations come down, but you know,
most Americans still feel like things are cost too much
in factor going up. HBS Pricing Lab that's the Harvest
Business School. They actually analyzed over three hundred and thirty
(05:30):
thousand products and they found that from March to June,
prices are up about three percent. That's for imported goods.
For domestic goods up about two percent. So even in
the last you know, four or five months, prices continue
to go up in America.
Speaker 1 (05:45):
Also going up is a Bitcoin hit a new record yesterday.
I think this was a kind of tied to the
Nvidia rally. What is bitcoin at right now?
Speaker 2 (05:54):
Over one hundred and twelve thousand dollars a coin? And
Mike count me among those so called experts who really
missed the boat on this one. If you're like me,
you said, well, what the heck do I do with
the bitcoin? Let's end, two percent of people who own
it used it as currency. But you're absolutely right, new
all time high one hundred and twelve thousand dollars a coin.
It had been in kind of a tight range for
(06:15):
several weeks, and you know, the word on the street,
mic now is if this is seen as a legitimate
store of value, and more and more you have, you know,
well known financial advisors coming out saying maybe it is
time to make bitcoin part of a portfolio. So not advice,
just observation. All time high for bitcoin and a lot
of those technology related names.
Speaker 3 (06:33):
But you're right. I mean, I'm I'm right there with you.
Speaker 1 (06:35):
If you know you would have told me when bitcoin
was one thousand dollars, I would have been like.
Speaker 3 (06:40):
I'm not spend that's I don't even know what this is.
Speaker 1 (06:42):
I can't go in buy a gallon of milk and
a loaf of breade with bitcoin. I don't really understand it.
So I'm gonna wait this one out. But if I
if we had gotten in on bitcoin at one thousand dollars, Jonathan,
we'd be loving life right now.
Speaker 2 (06:54):
This is my life, Mike, would this is this is
a story in my life. But you know, we have
talked a lot about AI and the tremendous advancements in
that and actually an interesting story out yesterday. Microsoft is
saving tremendous money. They racked up about a five hundred
million dollars in savings using AI and way for it
(07:15):
flashing jobs. This is primarily in the customer service and
the call centers, et cetera. Basically Muff saying we're saving
a lot of money because we're firing employees and replacing
them with AI. So kind of a sobering notes this morning, Mike.
You know, we're celebrating the advancements of AI, but you know,
the American workforce is going to look a lot different
in ten years than it does now.
Speaker 1 (07:35):
Yeah. I hope that's not the case. And I'm predicting
an AI backlash at some point that people are going
to get so sick of everything being so perfect and flawless.
Whether it's you know, the voices you hear on the
other end of the phone, or whether it's graphics online
or some sort of writing, it's people are going to
start craving. They're going to start craving authentic authenticity. They're
(07:56):
going to crave imperfection because AI is so smooth and
so perfect that eventually we're going to go, you know,
we want authentic experiences. So I hope we're wrong on that,
but for now AI is certainly a boy.
Speaker 3 (08:09):
We just look at Nvidia. That tells the entire story.
Speaker 1 (08:12):
Speaking with johnthanhone capitalistpig dot Com a story here locally
in Ohio, Jonathan is state is giving three hundred and
ten million dollars to defense Contractor andrel.
Speaker 2 (08:24):
Yeah, and this is going to really to help propel
supposedly help propel you know, Ohio. Even further, my defense
contractor and Reial Industries. They've been given a three hundred
and ten million grants from Ohio's Job Creation Office. Basically,
this is a thirty year economic development deal and they're
calling for the company to create over four thousand new jobs,
(08:45):
five hundred million dollars in new payroll, and they're going
to make almost a billion dollars in capital investments over
the ten years. And I'll tell you this is producing
something that to my knowledge, AI can't do, which is
military drones and economous air vehicles. So it's just great
to se he might despite you know, some hiring worries
around the rest of the country. Central Ohio and Columbus
(09:06):
continually to power forward. In my opinion, it's because of
the spirit of the people there and the American spirits
that they embodied. So great to see Columbus continuing to
having the success, new jobs on the.
Speaker 1 (09:17):
Way, great info as always, more information there in about
eight or nine minutes than you're gonna hear anyone else
all day. If you have any personal finance questions, reach
out to Jonathan capitalistpig dot com.
Speaker 3 (09:28):
Mister Honig. Thank you for at the time. We'll talk
again next week.
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