SOTS 2nd Hour: Apollo's Chief Economist, "Why The Fed Shouldn't Cut", and EchoStar Shares Lift-Off 9/8/25

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Sara Eisen (1:01)

Good Monday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. All this back together live at Post 9 from the New York Stock Exchange. Stocks kicking off the week in the green. Looking at the S&P at least up about two tenths of a percent. Tech leads NASDAQ up seven tenths. Dow lags down 84 points. And what is usually a tricky seasonal month of September? Taking a look at treasuries. Holding most of the rally that we saw after jobs with the 10-year look down to 405 So actually making new lows here. More buying of treasuries into the Fed meeting next week, into the inflation report. This week, the two-year yield sits just below 35 Coming up this hour, Apollo's Torsten Slock joins us ahead of a huge week of potentially market moving inflation data.

Plus, Rockefeller's Ruchir Sharma out with a new Financial Times piece urging the Fed not to cut rates at next week's meeting. He will join us to make that case. And Apple's getting ready for a major hardware announcement. We'll talk about whether or not tomorrow's event can get Apple back into the green for the year. Right now, it looks like just technology, communication services and consumer discretionary groups are positive in the S&P 500 But guys, what stood out to me this morning is the amount of notable folks weighing in on the Fed, Fed independence. There was an op-ed from Ken Griffin, of course, the founder and CEO of one of the world's most successful hedge funds, Citadel, and also a big GOP donor in the past.

David Faber (2:30)

And one of the most successful proc trading firms as well and market makers.

Sara Eisen (2:33)

Don't forget that part of the business. Yeah, Citadel.

David Faber (2:35)

Citadel Securities is not insignificant either.

Sara Eisen (2:39)

So when he speaks, we pay attention. So here's what he's saying in the Wall Street Journal today. And here's just a snippet of it. The president's strategy of publicly criticizing the Fed, suggesting the dismissal of governors, pressuring the central bank to adopt a more permissive stance toward inflation, carries steep costs. These actions raise inflation expectations, increase market risk premiums, and weaken investor confidence in US institutions. Guys, he goes on to say that he sort of compares what's been happening with emerging markets. He said, together, these developments highlight risks that recall experiences in emerging markets where political influence eroded institutional credibility. I think his message is actually one toward the administration, but also toward the investing community, which is prioritize credibility in US institutions and US financial markets, because he said the result is not pretty. He said, the president is incentivized to prioritize credibility. The people are prioritized. They should be prioritized to to do so with credibility because we've seen interest rates can rise and that ultimately hurts everyone. He's not so specific in terms of, you know, going after Lisa Cook. He did mention the BLS had firing and that sort of thing. But I think the message is clear. Just be careful, because once you lose credibility and the US has it, of course, and all of its assets, and this is not suggesting otherwise, it's harder to get back. And once that genie is out of the bottle, you can see higher interest rates and a premium put on our debt to borrow, which would ultimately hurt people and the government and potentially the administration, where people could vote out. I mean, he looked at examples where central banks don't listen, or they do listen to a White House, which pressures them to lower interest rates at a time of inflation. And once that inflation is out, that's harmful.

David Faber (4:27)

Yeah, you get Arthur Burns and Nixon.

Sara Eisen (4:29)

Exactly, the 70s.

David Faber (4:30)

Right. And then you get the 70s and Volcker having to raise interest rates.