NY Life's Hermann: 'We have a lot of risk and almost none of that is priced in'

Julia Hermann, global market strategist at New York Life Investments, says she is concerned about market volatility for the remainder of the year, especially as tariff impacts work their way further into the economy and as we see some resolution on their status. While tariffs pose the risk of creating an exogenous shock — precisely what Hermann worried about triggering a recession when she last visited the show in February — she says that recession risk now is actually lower than it was when trade policies were made public in early April. She also discusses the firm's 2025 MegaTrends report, which looks at global debt investing, talking about how deficit spending and other concerns will impact credit markets over the next decade.  Greg McBride, chief financial analyst at Bankrate.com, checks in ahead of today's Fed meeting and announcement on what he expects from central bankers for the remainder of the year and whether cuts — whenever they start — will have the classic result investors are clamoring for. Plus Todd Rosenbluth, head of research at VettaFi, makes a play on the market's recent momentum with his pick for the "ETF of the Week."