In this episode of “Wall Street Week,” David Westin discusses several key topics shaping the future of capitalism, starting with the Federal Reserve’s recent decision on interest rates. Glenn Hubbard, former head of the Council of Economic Advisors, expresses skepticism about the rationale for cutting rates given the Fed’s own optimistic GDP growth forecasts for 2026. Hubbard highlights the uncertainty around AI’s impact on productivity and inflation, noting that while AI could drive a significant productivity boom, it may also pose challenges for employment that require government intervention rather than monetary policy adjustments. He also touches on the importance of the Fed maintaining independence amid political pressures and the significance of upcoming leadership changes.

The conversation then shifts to the race in artificial intelligence, focusing on the debate between open source and proprietary approaches. Lisa Su, CEO of AMD, advocates for an open ecosystem in AI development, emphasizing that open standards encourage broader collaboration and faster innovation by allowing many developers to contribute. She acknowledges the coexistence of proprietary models, especially among major tech companies, but believes that a competitive ecosystem with both open and closed elements ultimately benefits consumers and accelerates progress. The discussion also highlights China’s rapid growth in open source AI models, which is challenging the dominance of U.S. tech giants.

The episode explores the critical issue of energy demand driven by AI data centers and reshoring of manufacturing, with a particular focus on nuclear power as a necessary component of future electricity supply. Experts from CSIS and GE Vernova discuss the challenges and opportunities in expanding nuclear energy, including the development of small modular reactors (SMRs) that promise more flexible and cost-effective power generation. Despite the long history of nuclear power in the U.S., new plants have been scarce, and the industry faces regulatory and supply chain hurdles. However, bipartisan support and recent government funding initiatives signal a potential resurgence in nuclear energy to meet growing demand and decarbonization goals.

The segment on department stores examines the decline of these retail giants from their mid-20th-century heyday to their current struggle for relevance amid changing consumer habits and economic pressures. Macy’s CEO Tony Spring outlines a strategy focused on closing underperforming stores and reinvesting in key locations to create neighborhood stores that offer convenience and curated selections. Retail experts emphasize the importance of reconnecting with customers by providing personalized service, quality products, and an engaging shopping experience that goes beyond discounts. The contrast between Macy’s middle-market approach and Bloomingdale’s luxury focus illustrates different paths to revitalization within the department store sector.

Finally, Lisa Su returns to discuss the broader implications of AI’s rapid advancement and the balance between open and proprietary technologies. She stresses that AI is still in its early stages with enormous potential to transform industries by enhancing productivity rather than merely reducing labor. Su explains that AMD’s business model centers on selling proprietary chips that support an open software ecosystem, allowing developers flexibility and innovation while protecting critical intellectual property. She also addresses concerns about security and misuse in open AI systems, advocating for community oversight and standards to maintain trust and integrity. The episode closes with a reflection on the ongoing evolution of capitalism driven by technology, energy, and consumer dynamics.