Bloomberg Talks Franklin Templeton President/CEO Jenny Johnson Talks Tariffs
May 6, 2025
Jenny Johnson, President and CEO of Franklin Templeton, shares insights on the interconnectedness of tariffs, taxes, and deregulation impacting the U.S. economy. She anticipates a single interest rate cut from the Federal Reserve and describes the current economy as 'pretty strong.' Further, Jenny emphasizes the strategic importance of integrating private assets into wealth channels amidst market volatility, providing a guide for both institutional and individual investors navigating today’s financial landscape.
AI Snips
Chapters
Transcript
Episode notes
Interlocking Policy Engine
- Tariffs, taxes, and deregulation form an interlocking engine driving US policy changes within a limited 18-month window.
- Tariffs aim to fund tax cuts while deregulation supports business, especially global companies.
Deficit Challenges and Solutions
- Adding deficits during good economic times reduces leverage for recession responses.
- Paying for tax cuts through tariffs and government efficiency is crucial to control deficits.
Fed Cuts Amid Economic Strength
- A single Fed rate cut is likely this year despite rising 10-year Treasury yields.
- The US economy remains robust, though uncertainty about tariffs restrains business investment.