HOST:
00:00:00
Welcome back to CBS News 24/7. We're watching your money right now. The US and the European Union have revealed new details about the framework of their trade agreement made last month. In a joint statement, the two sides say the agreement puts their trade and investment relationship on solid footing. Both sides intend for the agreement to be a first step in a process that they say can be further expanded over time. Market Watch-- MoneyWatch editor bill Watts joins us now. Bill, what are the details? They say the devil's in the details. So tell us what they are. Right. And I think there was people were eager to see what was actually agreed and to have it on paper. So that's what we got today. I think the big thing there was just in terms of clearing up some uncertainty around lumber, semiconductor chips, and pharmaceuticals. And basically we saw that the document basically affirmed that there would be a maximum 15% tariff on those items. And I think that was something people wanted to see on paper, better than wasn't clear if that was going to be the ceiling or the floor. So I think the fact that was the ceiling is probably providing some relief for those sectors. But overall, the market didn't really have much in the way of a reaction to that. The focus is really still on next tomorrow and what we hear from the Fed Chair. Yeah, let's talk about that. Fed Chair Jerome Powell arguably counting his last days on the job. His term ends may of next year. President Trump is no fan of Mr. Powell. So what are you watching for in his final major speech as Fed Chair? And are we getting a sense of who will replace him? Well, I think the question of who replaces him is a bit wide open at the moment. There are several candidates in the running, but it seems like the White House has expanded that process rather than narrowed it down of late. As far as Powell's speech goes, I don't think there's-- well, I think the market is really looking for some sort of indication that a rate cut is definitely coming in September. And certainly, the White House wants that as well. But I think there's a good chance that we don't see that sort of commitment from Powell. He's very likely to want to leave his options open. We saw in the minutes of the last Fed meeting that were released yesterday that there was a pretty widespread concern about what the tariff impact will be on inflation in coming months. So he's probably not going to rule out a quarter point cut because there are concerns about the labor market. But it may be too early for him to forcefully signal that an easing is definitely on the way.
HOST:
00:03:05
Markets editor MarketWatch, Bill Watts, nice to talk to you today. Thank you so much.
