Marketplace
U.S. to talk trade with China
May 7, 2025
Kristen Schwab, a Marketplace correspondent exploring personal economic journeys, and Sabree Beneshore, also a correspondent from New York, dive into the pressing topics of U.S.-China trade talks. They discuss the urgency of recent negotiations amid rising tariff pressures and the historically slow pace of substantial change. The duo also examines the impact of tariffs on businesses, revealing how entrepreneurs manage rising costs while preserving customer trust. Additionally, they share insights into corporate strategies with eurobonds and the emotional resilience of small business owners.
25:25
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The U.S.-China trade negotiations face significant challenges as escalating tariffs threaten supply chains and employment in both countries.
- The Federal Reserve is cautious about potential stagflation, balancing inflation and unemployment concerns in response to tariff impacts.
Deep dives
Federal Reserve's Stagflation Concerns
The Federal Reserve is increasingly worried about stagflation, a scenario characterized by rising inflation and unemployment driven by tariffs. Chair Powell highlighted that ongoing tariffs may lead to higher prices for consumers while also slowing economic growth, creating a challenging situation for policymakers. This uncertainty has put the Fed in a position where any interest rate adjustments needed to combat inflation could exacerbate unemployment and vice versa. Consequently, the current economic landscape necessitates a cautious approach, with Powell suggesting that waiting to see how conditions unfold might be a prudent strategy.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
