Macro Mondays
Is Trump’s Plan Working?
May 5, 2025
The hosts dive into the evolving trade relations between the U.S. and China, highlighting a recent surge in Chinese purchases of U.S. Treasuries. They delve into the fluctuation of the New Taiwan dollar and the surprising positive ISM services report. A bold proposal for hefty tariffs on foreign films sparks a discussion on its impact on digital content and streaming giants. Additionally, the show assesses the implications of currency dynamics amid a weaker dollar and explores global monetary policy's influence on market sentiment.
30:03
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Quick takeaways
- The unexpected resilience of the US economy suggests that tariffs imposed by Trump may not lead to the anticipated downturn.
- Trump's controversial proposal for 100% tariffs on foreign-produced movies illustrates the complexities of taxing services compared to goods.
Deep dives
US Economy Update
Recent ISM services reports show that the US economy is not declining as rapidly as expected, despite ongoing discussions about tariffs. The podcast highlights a surprising resilience in economic indicators, suggesting that the anticipated negative effects of tariffs may not yet be materializing. Many economists thought these tariffs would lead to a significant downturn, but evidence suggests a more stable situation, potentially signaling that the economy has reached a bottom. This outlook reflects cautious optimism, with analysts noting that recent data could indicate a path toward recovery.
