Hassett: We Trust Warsh's Judgment, Trump: US Will Hit Iran Hard, More

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Bloomberg News Now 7 min 8 speakers 8 chapters transcribed 1 month ago
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What is the main topic discussed in this episode?

Bloomberg This Weekend Podcast 0:00
To send. questions to our hosts. Earnings kicking into high gear.

How are Fed officials approaching a contentious interest-rate decision this week?

Bloomberg This Weekend Podcast 0:18
Your questions on big tech earnings live on Bloomberg Radio. A subscriber exclusive. Visit Bloomberg.com slash ask radio to join the conversation. Then listen at 4 p.m. Eastern on Bloomberg Radio.
Amy Morris 0:30
News when you want it with Bloomberg News Now, I'm Amy Morris. Fed officials head into their policy meeting this week confronting a resurgence in price pressures that could make their decision on whether to hold or hike interest rates a close call and a contentious one. Former Kansas City Fed President Esther George.

Why is former Kansas City Fed President Esther George worried about prolonged inflation?

Esther George 0:47
I've been concerned for some time about the duration of elevated inflation in the economy. And yes, we've had a number of One-offs, as we call them, coming, hitting the economy.
Amy Morris 1:01
Former Kansas City Fed President Esther George on Bloomberg surveillance. National Economic Council Director Kevin Hassett tells CNBC that President Trump and the economic team expect Fed Chair Kevin Warsh to, quote, do the right thing and that they trust his judgment.

What did Kevin Hassett say about trusting Fed Chair Kevin Warsh's judgment?

Amy Morris 1:16
Stay with Bloomberg for full coverage of the decision and Chair Warsh's news conference on a special edition of Bloomberg Surveillance, The Fed Decides, on Bloomberg Radio, Bloomberg Television, and the Bloomberg Business app. President Trump reportedly said the U.S. would hit Iran hard after a recent attack that targeted a military base in Jordan. Fox News reports Trump said in a phone interview that Iran is, quote, going to get a beating.

How did President Trump reportedly respond to the attack tied to Iran and Jordan?

Amy Morris 1:40
Retired Lieutenant General Karen Gibson, advisor at Academy Security's Geopolitical Intelligence Group.
Karen Gibson 1:46
There are simply no indications that Iran is willing to compromise at this time. Their priority is to gain recognition of control over the Strait of Hormuzd. There are signs of some internal divisions, but let's be clear, it's the security state that's running the show.
Amy Morris 2:01
Retired Lieutenant General Karen Gibson, a guest on Bloomberg Surveillance. Iraq's Popular Mobilization Forces says the U.S. and Saudi Arabia struck Iran-backed militants in Iraq, killing 20 people. Crude oil now off its session highs, but has jumped more than 7 percent.

What do experts say about Iran's motives and internal divisions after regional strikes?

Amy Morris 2:17
WTI now closing in on $85 a barrel. Brent crude topping $90 a barrel. Stocks are lower as investors wait to hear from the Fed and for earnings from Microsoft, Meta and Qualcomm after the closing bell. We check markets for you all day long here at Bloomberg. The S&P 500 down three quarters of a percent. NASDAQ down nine tenths of a percent. The Dow is down one and a half percent. The Russell 2000 index down one point four percent.

How are markets reacting to geopolitical risk and major corporate earnings updates?

Amy Morris 2:43
The 10-year Treasury yield at 4.64%, the 2-year yield at 4.33%. The Philadelphia Semiconductor Index is about 4% lower, led by Micron, which has now fallen more than 6%. SK Hynix shares more than 7% lower after announcing second quarter operating missed profit estimates. Ford reported second quarter adjusted profit that topped analyst estimates and boosted the 2026 adjusted guidance. Ford shares now about 3% higher. And Visa shares nearly 2% higher after reporting a fiscal third quarter profit that beat estimates. Visa is also eliminating roughly 2,600 jobs, about 7% of its workforce. SoFi Technology CEO Anthony Noto says the company is preparing for two rate hikes this year, but believes a higher rate environment would not derail strong revenue growth.
Anthony Noto 3:34
From our vantage point, the economy looks very strong. Inflation isn't causing consumers to hold back. We're not seeing an uptick in unemployment, and we're not seeing any deviation on the credit side.
Amy Morris 3:45
Hear our entire interview with SoFi Technology CEO Anthony Nono on the Bloomberg Talks podcast. SoFi Technology shares now nearly 9% lower. Wall Street firms are rolling out investment products tied to SpaceX shares that aim to shield buyers from future losses amid a sharp sell-off following its market debut. At least five financial firms are looking to offer SpaceX-linked structured notes to limit downside while capping gains over the coming months. SpaceX shares are now down about 2%. On Capitol Hill, Dr. Anthony Fauci invoked his Fifth Amendment right to not testify at a Senate committee hearing on his role in the U.S.

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