July 17, 2025 • 10 mins
Jonathan Hoenig of CapitalistPig.com has the latest national business news including the latest stock numbers, and whether or not Trump fires Jerome Powell
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
You know this guy who's standing by right now on
the Lacy Retirement Group dot com phone line. Just a
bundle of information and energy all at the same time.
Our favorites, Capitalist fig Jonathan Hondy, Good morning, Johnathan. How
are you that?
Speaker 2 (00:11):
It's great to be with you? And congratulations. I mean
I accomplished this morning. I don't know, eating a sticky
bun and a large coffee so far. So I can't
say that I've modeled your excellence in health. But I'm
trying to keep an eye on our money and our
money situation. And there's so much going on. The market
was up yesterday and the dad was up about two
hundred points. But you know, there's this big question now
(00:33):
is is Donald Trump? Is President Trump going to fire
Jerome Powell, the Federal Reserve chairman. You know, he's been
very critical of his his his management style. He's been
very critical of him not lowering interest rates. In fact,
yesterday he compared talking to Jerome Powell to talking to a.
Speaker 1 (00:52):
Chair, So, uh, we're back to the chair thing again.
Speaker 2 (00:58):
Lots of drama when it comes to Reserve, but also
just banks and the consumer itself. A lot of these
big banks are reporting this week, Chuck, they're reporting their
earnings and the large US banks by and larger saying
that consumer finances remain healthy despite the tariffs. They think
the economy is by and large doing just fine. We
got the story over at Barons dot com. So you know,
(01:19):
it's an encouraging news at least from the banking side,
that the economy is strong and the US consumer's plight
has improved.
Speaker 1 (01:27):
We're watching reactions so strong, and I don't know that
the market reacts to things whether they happen or not.
It's what they think may happen. And Donald Trump's words,
Jerome Powe's words, and even Jamie Diamond's words can can
send us two hundred points in either direction any given day.
Speaker 2 (01:44):
Indeed, in fact, you know, a lot of volatility came
after Trump was asked about that question, is you know,
hire Jerome Powell. He has said on the record that
he has quote talked about the concept of firing Powell.
But you know, part of what their going after the
Federal Reserve chairman for is this truck, is this renovation
of the Fed's headquarters. You know, supposedly this management is
(02:07):
being drummed up as the excuse perhaps to get rid
of Powell. But you know, we always talk about the
market hating uncertainty, and you know whether Jerome Powell will
be the the FED chair or not. And keep in
mind he was selected by Trump. I mean, Jerome Powell
was selected by Trump years ago. But whether or not
he remains in that post is putting a lot of
(02:27):
fear and a lot of uncertainty into mining investors' plans.
Speaker 1 (02:30):
Now, firing back from the other side, the FED is saying,
you know, now, let us explain to you why what
we're doing is helping, right yeah, and.
Speaker 2 (02:38):
The in fact, one of the reasons the FED explicitly
has said that they have not cut rates is because
inflation is accelerating, and Terris had one part to do
with that. I mean, we've got the number on yesterday.
Inflation actually increased in June. It moved further away from
the Fed's target rates, and it's humming along somewhere about
two point seven percent on an annualized basis. That's much
(03:01):
more than the FED would like. So it's one of
the reasons why despite the presidents, please, Jerome Powell is saying, look,
I'm looking at the data and right now the interst
rates are more likely to go perhaps even up, then
go down.
Speaker 1 (03:14):
You deal with money every day, and the point I
was making earlier this morning is that you know, comparing
the year to year, that's six months of the previous
administration as well, and you have to take that into
account when you look at the last two months May
and June. We're looking at a point three move, which
you know, it's thirty cents on one hundred dollars. It's
not as monumental as so many people seem to be
(03:36):
presenting it. And I don't think it's any reason to
be scared, do you no?
Speaker 2 (03:40):
And chuck to your point too. You really have to
look and think in the long term when you're talking
about stock market investments. You know, we cover the business move,
we cover every tick. But if you're truly in it
for the long haul, if you're in your twenties, thirties, forties,
or even fifties and have five to ten years worth
five to ten years work before you need the money,
(04:01):
the stock market has always been the most profitable place
to be. The issue is if you're perhaps in your
sixties or seventies living off a fixed income, you know,
the issues about retirements are very very true and very
very real. And you know, Doug, we've joked about it before,
but you know, one hundred thousand dollars simply isn't what
it used to be in today's economy. And that's what
(04:21):
makes that inflation, even a low level of inflation, so
insidious that continues to home along eating away at the
purchasing power and the quality of our life.
Speaker 1 (04:31):
And this is Jonathan Honing. By the way, you can
catch me a capitalistpig dot com. Jonathan. Let's make it
about the all important me, me, me, What are these
plans about the four oh one K that the Trump
administration is talking about? How does this affect me? What's
going on?
Speaker 2 (04:45):
Well, basically giving you more choice, I mean, Trumps. The
plan is to open four one K investments to private markets,
so you know, you have private markets like you've heard of,
private equity, venture capital, real estate partnership, hedge funds. You know,
these have traditionally been the area of very very wealthy
(05:05):
investors because most people's savings is in the retirement and
those vehicles have not been able to yet participate. So
President Trump is signing an executive order that would expand
that access to that for wing K to private market investments. Now, look,
I have to say, there's always risk in every investment,
so you want to do your due diligence. But Chuck
bind Large, the fact that the President is making it
(05:28):
easier for us to choose how and where we want
to invest with less regulation, that's a positive thing short
and long term.
Speaker 1 (05:35):
I need a four h one K that allows me
to invest in postage stamp futures because I think there's growth.
Speaker 2 (05:41):
There for shore, in fact, guaranteed growth. Just yet, last year, Chuck,
the USPS said that there's going to be five stamp
price changes in the next five years at least, and
one of them is coming straight ahead. Now, first class
stamps are going up to seventy eight cents of stamp
(06:01):
from seventy three percent, effectively raises the price by about
seven and a half percent. And check. You know, you
and I are old codgers here. We might still go
to the mailbox and use use a first class stamp.
But you know, millennials and young people simply have abandoned
the postal service writ large, except for getting their Amazon packages.
But the USPS is it basically a financial and occupational crisis.
(06:25):
So they're trying to raise money as well, and that's
why the cost of stamps went up just last year,
is going up once again and going up again if
not later this year early twenty twenty six.
Speaker 1 (06:36):
The strategicy here just isn't working for me, because, you know,
the technology exists to basically make the post office relatively pointless.
Those of us who do use it on any regular
basis do so out of some form of the most sentiment.
This is how we've always done it, so we just
keep doing when it becomes too expensive for that to happen.
I don't know what happens with the post office. I
(06:57):
don't know that it continues to exist.
Speaker 2 (07:00):
I truly mean check it might end up being like
you know, the silent movie theaters that, to your point,
just simply stopped existing, you know, And why would you
put a check in the mail with something that could
be theoretically compromised Some rips it open gets your checking
account number as against paying bills online. You know, over
at capitalistpig dot com, we're always talking about money saving
(07:20):
tips and safe ways to manage and hold your money.
And if you're not using electronic bill payments, you're really
putting yourself at risk. I think of a serious theft
or fraud. A lot of people have checks, you know, stolen,
they have their credit card numbers stolen, and it can
lead to lots of stolen that in any problem. So
save yourself the hassle and the seventy eight cents. Pay
(07:40):
those bills online.
Speaker 1 (07:41):
Let's talk important stuff, things that go in your mouth.
Co Cola, this, I guess because of you know, the
Kennedy health stuff. This is a big deal though.
Speaker 2 (07:52):
Apparently, yeah, this is a big deal. And President Trump
was out yesterday basically touting that he is he is
change or we will inspire a change in Coca cola
when it's weirdly, when it's the world's most popular drinks.
You know, Coca cola here in the States is made
with high fruit close corn syrup. But President Trump said
(08:12):
yesterday that Coke has agreed to use real cane sugar
in its beverages after he had talked about it. He
said he had talked to the CEO of Coke, And
as you said, Robert F. Kennedy Junior has been pushing
their companies forward to not use processed ingredients. So basically
from saying coch is getting rid of the high fruitals
born syrup and switching back to pure old cane sugar. Now,
(08:35):
the company has been a little bit more mum on
the issue. They've been a little more sketchy. They haven't
actually put out that confirmation. But you know what's interesting, Chuck,
is the reason of price of sugar is so high
in this country and corn is so relatively cheaper is
because of tariffs and regulation as it is. So the
President could probably lower the price of sugar if you
(08:56):
wanted to, simply that we're removing that regulation. Instead, he
is pressuring Coke and they are, at least according to Trump,
it's going to be using sugar in their products from
now on. Corn syrup is out.
Speaker 1 (09:08):
No, No, I'm not an investment advisor by any stretch
of the imagination. But I'll tell you what if they
decide to do that and make American cane sugar Coca Cola,
A lot of people wouldn't invest in an established company
like that. I'd buy into Coca Cola because it's better.
We've got Mexican markets in my neighborhood. The Mexican coke
is better. I go there and get the cane sugar coke,
so I think it'll do great things for the company
(09:30):
if they do it.
Speaker 2 (09:31):
Yeah, I mean, look, it's definitely a case preference. But
like you, I mean, I grew up with the real
thing before the year of hyperquos corn syrup, and it
certainly tastes I think a lot better as well. It'll
be up to the consumer ultimately to aside, and that's
why we're keeping such a close eye. And once again
shut this confluence of Wall Street and Washington under President Trump.
Speaker 1 (09:51):
All Right, buddy, I'll tell you what I know that
you wanted to talk about coffee prices going up. That's
going to depress me. But let's end with that.
Speaker 2 (09:59):
Yeah. Look, the fact that some prices are going up,
and in fact, Brazil, which President Trump just yesterday threatened
with a fifty percent tariff five zero, I mean, coffee
could be one of them. You know, a lot of
coffee imported from Brazil in this country, so we're already
seeing some of the effects on the wholesale level. USA
(10:19):
Today highlighted one importer who said that the coffee begins
have gone up from six thousand to nine thousand over
the last year, and on the retail level, just a
twelve ounce bag of Superior Coffee roasting coffee has gone
now to thirteen ninety nine. That's up from eleven ninety
nine just a year ago. So, you know, these seem
like small increases, you know, a dollar here, a dollar there,
(10:41):
but we're talking about ten, fifteen, twenty percent pricing increases
on a lot of everyday items from America.
You know this guy who's standing by right now on
the Lacy Retirement Group dot com phone line. Just a
bundle of information and energy all at the same time.
Our favorites, Capitalist fig Jonathan Hondy, Good morning, Johnathan. How
are you that?
Speaker 2 (00:11):
It's great to be with you? And congratulations. I mean
I accomplished this morning. I don't know, eating a sticky
bun and a large coffee so far. So I can't
say that I've modeled your excellence in health. But I'm
trying to keep an eye on our money and our
money situation. And there's so much going on. The market
was up yesterday and the dad was up about two
hundred points. But you know, there's this big question now
(00:33):
is is Donald Trump? Is President Trump going to fire
Jerome Powell, the Federal Reserve chairman. You know, he's been
very critical of his his his management style. He's been
very critical of him not lowering interest rates. In fact,
yesterday he compared talking to Jerome Powell to talking to a.
Speaker 1 (00:52):
Chair, So, uh, we're back to the chair thing again.
Speaker 2 (00:58):
Lots of drama when it comes to Reserve, but also
just banks and the consumer itself. A lot of these
big banks are reporting this week, Chuck, they're reporting their
earnings and the large US banks by and larger saying
that consumer finances remain healthy despite the tariffs. They think
the economy is by and large doing just fine. We
got the story over at Barons dot com. So you know,
(01:19):
it's an encouraging news at least from the banking side,
that the economy is strong and the US consumer's plight
has improved.
Speaker 1 (01:27):
We're watching reactions so strong, and I don't know that
the market reacts to things whether they happen or not.
It's what they think may happen. And Donald Trump's words,
Jerome Powe's words, and even Jamie Diamond's words can can
send us two hundred points in either direction any given day.
Speaker 2 (01:44):
Indeed, in fact, you know, a lot of volatility came
after Trump was asked about that question, is you know,
hire Jerome Powell. He has said on the record that
he has quote talked about the concept of firing Powell.
But you know, part of what their going after the
Federal Reserve chairman for is this truck, is this renovation
of the Fed's headquarters. You know, supposedly this management is
(02:07):
being drummed up as the excuse perhaps to get rid
of Powell. But you know, we always talk about the
market hating uncertainty, and you know whether Jerome Powell will
be the the FED chair or not. And keep in
mind he was selected by Trump. I mean, Jerome Powell
was selected by Trump years ago. But whether or not
he remains in that post is putting a lot of
(02:27):
fear and a lot of uncertainty into mining investors' plans.
Speaker 1 (02:30):
Now, firing back from the other side, the FED is saying,
you know, now, let us explain to you why what
we're doing is helping, right yeah, and.
Speaker 2 (02:38):
The in fact, one of the reasons the FED explicitly
has said that they have not cut rates is because
inflation is accelerating, and Terris had one part to do
with that. I mean, we've got the number on yesterday.
Inflation actually increased in June. It moved further away from
the Fed's target rates, and it's humming along somewhere about
two point seven percent on an annualized basis. That's much
(03:01):
more than the FED would like. So it's one of
the reasons why despite the presidents, please, Jerome Powell is saying, look,
I'm looking at the data and right now the interst
rates are more likely to go perhaps even up, then
go down.
Speaker 1 (03:14):
You deal with money every day, and the point I
was making earlier this morning is that you know, comparing
the year to year, that's six months of the previous
administration as well, and you have to take that into
account when you look at the last two months May
and June. We're looking at a point three move, which
you know, it's thirty cents on one hundred dollars. It's
not as monumental as so many people seem to be
(03:36):
presenting it. And I don't think it's any reason to
be scared, do you no?
Speaker 2 (03:40):
And chuck to your point too. You really have to
look and think in the long term when you're talking
about stock market investments. You know, we cover the business move,
we cover every tick. But if you're truly in it
for the long haul, if you're in your twenties, thirties, forties,
or even fifties and have five to ten years worth
five to ten years work before you need the money,
(04:01):
the stock market has always been the most profitable place
to be. The issue is if you're perhaps in your
sixties or seventies living off a fixed income, you know,
the issues about retirements are very very true and very
very real. And you know, Doug, we've joked about it before,
but you know, one hundred thousand dollars simply isn't what
it used to be in today's economy. And that's what
(04:21):
makes that inflation, even a low level of inflation, so
insidious that continues to home along eating away at the
purchasing power and the quality of our life.
Speaker 1 (04:31):
And this is Jonathan Honing. By the way, you can
catch me a capitalistpig dot com. Jonathan. Let's make it
about the all important me, me, me, What are these
plans about the four oh one K that the Trump
administration is talking about? How does this affect me? What's
going on?
Speaker 2 (04:45):
Well, basically giving you more choice, I mean, Trumps. The
plan is to open four one K investments to private markets,
so you know, you have private markets like you've heard of,
private equity, venture capital, real estate partnership, hedge funds. You know,
these have traditionally been the area of very very wealthy
(05:05):
investors because most people's savings is in the retirement and
those vehicles have not been able to yet participate. So
President Trump is signing an executive order that would expand
that access to that for wing K to private market investments. Now, look,
I have to say, there's always risk in every investment,
so you want to do your due diligence. But Chuck
bind Large, the fact that the President is making it
(05:28):
easier for us to choose how and where we want
to invest with less regulation, that's a positive thing short
and long term.
Speaker 1 (05:35):
I need a four h one K that allows me
to invest in postage stamp futures because I think there's growth.
Speaker 2 (05:41):
There for shore, in fact, guaranteed growth. Just yet, last year, Chuck,
the USPS said that there's going to be five stamp
price changes in the next five years at least, and
one of them is coming straight ahead. Now, first class
stamps are going up to seventy eight cents of stamp
(06:01):
from seventy three percent, effectively raises the price by about
seven and a half percent. And check. You know, you
and I are old codgers here. We might still go
to the mailbox and use use a first class stamp.
But you know, millennials and young people simply have abandoned
the postal service writ large, except for getting their Amazon packages.
But the USPS is it basically a financial and occupational crisis.
(06:25):
So they're trying to raise money as well, and that's
why the cost of stamps went up just last year,
is going up once again and going up again if
not later this year early twenty twenty six.
Speaker 1 (06:36):
The strategicy here just isn't working for me, because, you know,
the technology exists to basically make the post office relatively pointless.
Those of us who do use it on any regular
basis do so out of some form of the most sentiment.
This is how we've always done it, so we just
keep doing when it becomes too expensive for that to happen.
I don't know what happens with the post office. I
(06:57):
don't know that it continues to exist.
Speaker 2 (07:00):
I truly mean check it might end up being like
you know, the silent movie theaters that, to your point,
just simply stopped existing, you know, And why would you
put a check in the mail with something that could
be theoretically compromised Some rips it open gets your checking
account number as against paying bills online. You know, over
at capitalistpig dot com, we're always talking about money saving
(07:20):
tips and safe ways to manage and hold your money.
And if you're not using electronic bill payments, you're really
putting yourself at risk. I think of a serious theft
or fraud. A lot of people have checks, you know, stolen,
they have their credit card numbers stolen, and it can
lead to lots of stolen that in any problem. So
save yourself the hassle and the seventy eight cents. Pay
(07:40):
those bills online.
Speaker 1 (07:41):
Let's talk important stuff, things that go in your mouth.
Co Cola, this, I guess because of you know, the
Kennedy health stuff. This is a big deal though.
Speaker 2 (07:52):
Apparently, yeah, this is a big deal. And President Trump
was out yesterday basically touting that he is he is
change or we will inspire a change in Coca cola
when it's weirdly, when it's the world's most popular drinks.
You know, Coca cola here in the States is made
with high fruit close corn syrup. But President Trump said
(08:12):
yesterday that Coke has agreed to use real cane sugar
in its beverages after he had talked about it. He
said he had talked to the CEO of Coke, And
as you said, Robert F. Kennedy Junior has been pushing
their companies forward to not use processed ingredients. So basically
from saying coch is getting rid of the high fruitals
born syrup and switching back to pure old cane sugar. Now,
(08:35):
the company has been a little bit more mum on
the issue. They've been a little more sketchy. They haven't
actually put out that confirmation. But you know what's interesting, Chuck,
is the reason of price of sugar is so high
in this country and corn is so relatively cheaper is
because of tariffs and regulation as it is. So the
President could probably lower the price of sugar if you
(08:56):
wanted to, simply that we're removing that regulation. Instead, he
is pressuring Coke and they are, at least according to Trump,
it's going to be using sugar in their products from
now on. Corn syrup is out.
Speaker 1 (09:08):
No, No, I'm not an investment advisor by any stretch
of the imagination. But I'll tell you what if they
decide to do that and make American cane sugar Coca Cola,
A lot of people wouldn't invest in an established company
like that. I'd buy into Coca Cola because it's better.
We've got Mexican markets in my neighborhood. The Mexican coke
is better. I go there and get the cane sugar coke,
so I think it'll do great things for the company
(09:30):
if they do it.
Speaker 2 (09:31):
Yeah, I mean, look, it's definitely a case preference. But
like you, I mean, I grew up with the real
thing before the year of hyperquos corn syrup, and it
certainly tastes I think a lot better as well. It'll
be up to the consumer ultimately to aside, and that's
why we're keeping such a close eye. And once again
shut this confluence of Wall Street and Washington under President Trump.
Speaker 1 (09:51):
All Right, buddy, I'll tell you what I know that
you wanted to talk about coffee prices going up. That's
going to depress me. But let's end with that.
Speaker 2 (09:59):
Yeah. Look, the fact that some prices are going up,
and in fact, Brazil, which President Trump just yesterday threatened
with a fifty percent tariff five zero, I mean, coffee
could be one of them. You know, a lot of
coffee imported from Brazil in this country, so we're already
seeing some of the effects on the wholesale level. USA
(10:19):
Today highlighted one importer who said that the coffee begins
have gone up from six thousand to nine thousand over
the last year, and on the retail level, just a
twelve ounce bag of Superior Coffee roasting coffee has gone
now to thirteen ninety nine. That's up from eleven ninety
nine just a year ago. So, you know, these seem
like small increases, you know, a dollar here, a dollar there,
(10:41):
but we're talking about ten, fifteen, twenty percent pricing increases
on a lot of everyday items from America.
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