WSJ's Take On the Week
This Alternative Investor’s Take on How Trump Policies Weigh on Businesses
Mar 23, 2025
Michael Smith, co-head of credit at Ares Management, discusses the economic landscape for midsize businesses that collectively represent a significant portion of the American workforce. He highlights the essential role of private credit in supporting these companies and the challenges posed by tariffs and interest rates. The conversation also explores how midsize firms are adapting to economic uncertainty and the signals of resilience they’re showing despite looming recession fears. A fascinating mix of finance and sports adds a lighthearted touch!
27:44
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Quick takeaways
- Hiring difficulties among managers are raising concerns about economic health, potentially leading to a slowdown in consumer spending.
- Mid-sized businesses face increased costs from tariffs, impacting profit margins and consumer behavior as they navigate economic uncertainties.
Deep dives
Challenges in Hiring and Economic Indicators
Hiring managers are facing significant challenges in recruiting skilled talent, as indicated by recent research showing nine out of ten struggling to fill positions. This difficulty in hiring raises concerns about the overall health of the economy, particularly as crucial economic indicators like the PMI and home sales data come into focus. As businesses adapt to changing market conditions, they may hesitate to hire new employees, leading to a potential slowdown in consumer spending, which is vital for economic growth. The situation highlights a precarious balance as hiring difficulties intersect with looming questions about a possible recession and the impact of uncertainties like tariffs.
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