00:05Kevin, if prices do end up going up as a result of these tariffs, will the president consider changing force?
00:13Oh, I'm sorry.
00:17We've been following the data closely.
00:19The import prices have dropped dramatically since the tariffs started,
00:23which is a sign that, as President Trump suggested, that foreign countries and foreign companies are going to bear a lot of the tariff.
00:30We're highly confident, if you look at the GDP release today, that real wages grew at a 3% rate, a strikingly high rate.
00:37And that means that people have more money in their pockets than the price increases that they're seeing.
00:41And that's a good sign.
00:43I think that that's what we should expect to see in the future as well.
00:45But most of the tariffs haven't been put into place yet, right?
00:48We have $127 billion in revenue that we've raised already.
00:53And inflation is down, as you saw the GDP release today.
00:56CPI inflation or PCE inflation is at 2.1%.
00:59Yes?
00:59So the tariff issues, South Korea and the United States, they're talking today.
01:04Do you think that they conclude it's time or will you just go through August 1st that remained 25%?
01:13There's a lot of movement with South Korea.
01:16I know that, Robin, I'm meeting tomorrow with the South Koreans, so we'll have more tomorrow in the next day.
01:21So, but have you now?
01:22Do you expect the Fed share to lower rates today?
01:25Are you expecting anything from...
01:26We respect the independence of the Fed.
01:28We'll look forward to seeing what their decision is today.
01:30Has the president indicated to you at any point he may name a potential successor to Powell?
01:37Has he indicated that?
01:38He's asked Treasury Secretary Bessa to lead a thorough process to go through all the best candidates and then present the president with options.
01:45So this morning, Chuck Schubert, he said that the GDP growth numbers are a mirage.
01:51He said some dark numbers are below the surface.
01:55He was pointing to business investment numbers.
01:58Oh, that's...
01:59Can you respond to that?
02:00Well, I'm actually impressed that Mr. Schubert would be looking through the nuances of the numbers.
02:05If he had been doing that in the previous administration, he might have noticed that almost all of the growth in jobs was for government employees and almost all of the growth in GDP was for government spending.
02:16Government spending dropped enormously.
02:18We've reduced government employment by about 70,000 people and we've got 3% growth.
02:23The one bit of news in today's release that was a little bit different than all the other top lines was that there was a decline in capital formation.
02:32But that was for the manufacturing facilities that are going to be able to be expensed because we passed the big, beautiful bill.
02:40And so our expectation is that what happened is that people held up on construction because they wanted to make sure they could expense it after the bill was passed.
02:46So thank you. I've got to run now. So thank you, guys.
