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US stocks (^DJI, ^GSPC, ^IXIC) fell after the Federal Reserve held interest rates steady at its first meeting of 2025, following its three consecutive cuts in 2024.
Charles Schwab director and senior investment strategist Kevin Gordon sits down with Market Domination co-hosts Julie Hyman and Josh Lipton to discuss the Fed decision as the Trump administration weighs tariffs and the impact of tariffs on growth.
The strategist explains that metrics like the Institute for Supply Management (ISM) manufacturing index or business capital spending within gross domestic product (GDP) could "signal that we were maybe going into, if not an outright recession, then some form of a growth recession."
"It's probably worth looking more at the growth impact as opposed to the inflationary impact from tariffs," Gordon explains. "Regardless of what the percentage is [and] which countries have tariffs applied to them ... the nature of this policy-making in terms of it could be on one day, off another ... is what causes companies to maybe take a step back and halt their spending."
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This post was written by Naomi Buchanan.