Key Takeaways
- Former President Donald Trump sharply criticized Goldman Sachs (GS) and its CEO David Solomon, asserting that Solomon was mistaken about the impact of tariffs and that tariffs have not caused inflation.
- Federal Reserve Board nominee Stephen Miran stated that inflation has been "well behaved" since Trump took office and that inflationary pressures are contained, not widespread at the aggregate level.
- Richmond Federal Reserve President Thomas Barkin indicated that while consumer spending has eased, a significant pullback is unlikely, though he warned of potential pressure on both inflation and unemployment with an uncertain balance.
- Miran also affirmed that tariffs are borne by the nations being tariffed and that foreign investment commitments are genuine.
- Ukraine's Energy Ministry reported smoke detected near the cargo port of the Zaporizhzhia Nuclear Power Plant, though it noted the port is outside the plant's protected perimeter.
Former President Donald Trump has launched strong criticisms against Goldman Sachs (GS) and its CEO David Solomon, asserting that Solomon was incorrect in his assessment of the impact of tariffs. Trump claimed that tariffs have not caused inflation and that cash is "pouring into the Treasury" from foreign governments and companies paying these tariffs. He also criticized Goldman Sachs for not acknowledging what he perceives as their achievements.
Meanwhile, Stephen Miran, a nominee for the Federal Reserve Board and current White House Economic Adviser, echoed Trump's stance on tariffs and inflation. Miran stated that "inflation has been well behaved since Trump took office" and emphasized that there is no evidence of widespread inflationary pressures at the aggregate level, suggesting that inflationary forces are contained within specific sectors. Miran also affirmed that "tariffs will be borne by the nations we are tariffing" and that investment pledges from other countries are genuine commitments. His nomination to the Federal Reserve Board awaits Senate approval, possibly by September's meeting, and he stressed that "independence is paramount" for the Federal Reserve.
Richmond Federal Reserve President Thomas Barkin offered a nuanced view on the economy, noting that while consumer spending has eased, a major cut is unlikely due to low joblessness and continuing wage growth. Barkin warned of potential pressure on both inflation and unemployment, stating that the balance between the two remains unclear. He also suggested that changes in consumer spending might reduce how much tariffs affect inflation. Barkin believes that the Federal Reserve's policy is "well positioned to adjust as visibility about the economy lifts." He also posited that a rise in unemployment might be smaller than expected due to reduced immigration and slower labor growth.
In a separate development, Ukraine's Energy Ministry reported that smoke was detected near the cargo port of the Zaporizhzhia Nuclear Power Plant. The ministry clarified that the cargo port is located outside the plant's protected perimeter, indicating no immediate threat to the station itself.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.