| Speaker | Time | Text |
|---|---|---|
| Joining us now to talk about President Trump's economic policies is Courtney Brown. | ||
| She's Senior Economics Reporter for Axios. | ||
| Courtney, welcome. | ||
|
unidentified
|
Thank you for having me. | |
| Let's start with the inflation numbers. | ||
| They just came out yesterday morning. | ||
| What are they and where were they expected to be? | ||
|
unidentified
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So the inflation numbers were kind of hot. | |
| They weren't super hot, but they were a little warm. | ||
| And they showed that President Trump's tariff policy is starting to impact consumer prices. | ||
| But you kind of have to lift up the hood of the report and dig into certain categories to see it. | ||
| So categories like furniture, categories like apparel, those are the categories that economists have been watching for the last few months for signs of businesses passing on tariff-related costs to consumers. | ||
| And does this indicate that they are passing along those tariff costs? | ||
| At least somewhat. | ||
|
unidentified
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But this is the big question for the Federal Reserve, right? | |
| Is it a one-time price hike? | ||
| They take the cost of the tariff, they pass it on to consumers, the price goes up one time, or is it a continuous kind of cycle of price hikes? | ||
| That's what the Fed doesn't want to see. | ||
| Economists at the Fed are starting to come around to this idea that maybe it will just be a one-time price hike. | ||
| Of course, painful for consumers, but less of an inflationary problem. | ||
| What about groceries and gas? | ||
| Where were those? | ||
|
unidentified
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So the headline consumer price index was actually down relative to June because gasoline prices fell, gasoline and energy prices fell. | |
| But that is, of course, what consumers think about most, gasoline prices, grocery prices. | ||
| But economic policymakers actually like to watch the core CPI number that excludes energy and food costs. | ||
| And that was the one that was a little hot. | ||
| So we're seeing some relief on the energy front and on the grocery price front. | ||
| Let's talk about President Trump's deal with chipmakers NVIDIA and AMD. | ||
| Of course, NVIDIA is the $4 trillion company. | ||
| Yes. | ||
| Quite big. | ||
| What is that deal? | ||
| So explain the deal and what it means. | ||
|
unidentified
|
So NVIDIA makes, NVIDIA and AMD make the crucial chips that we need to really get ahead of the AI revolution, right? | |
| They make the chips that power data centers. | ||
| And President Trump said earlier this year, actually, I don't think it will be in our national security best interest if you sell these chips in China. | ||
| And what happened was NVIDIA and AMD cut a deal with the White House over the weekend. | ||
| The Financial Times reported it on Sunday that if they pay 15% of some of the revenue they make from their chip sales in China, they can obtain the export licenses to sell these chips in China. | ||
| And it's remarkable. | ||
| We've never seen a deal with the private sector and the government like this. | ||
| So it was a really eye-popping there's questions about that. | ||
| There's questions about that. |