Moody's Talks - Inside Economics Channeling Trump
Apr 9, 2025
John Carney, Finance and Economics Editor at Breitbart, channels President Trump's economic strategies, while Jim Parrott, a nonresident fellow at the Urban Institute, provides insights from his time in the Obama administration. They delve into the motivations behind Trump's trade war, highlighting that it’s far from over and recession looms. The duo discusses the impacts of tariffs on consumers and manufacturers and debates the intricacies of housing finance reform, particularly regarding Fannie and Freddie’s role in affordability and their connection to broader economic policies.
AI Snips
Chapters
Transcript
Episode notes
Trade War Goals
- Trump's trade war aims to restructure global trade rules, similar to Bretton Woods and Reagan eras.
- The goal is to open foreign markets to US goods and reduce persistent trade deficits.
Indonesia Tariff Example
- Indonesia imports heavily, mostly from China, due to favorable tariffs.
- The US aims to incentivize Indonesia to open its markets by imposing reciprocal tariffs.
Tariff Incidence
- Research suggests American consumers bear the brunt of tariff costs.
- However, some argue this is worthwhile if it leads to overall economic improvement and higher wages.