Marketplace All-in-One Is there a cost if economists face pressure to back up Trump?
Aug 13, 2025
The podcast delves into President Trump's clash with economists whose analyses threaten his economic narrative. Concerns arise about the impact on investor confidence. Also discussed are Spirit Airlines' financial woes amid a shaky market. In an intriguing twist, the focus shifts to France, where factories pivot from civilian goods to military production, spurred by rising geopolitical tensions. These changes bring both challenges and opportunities in job security and quality control in the production of defense components.
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Political Pressure Undermines Market Confidence
- Political pressure on economists can erode investor confidence and make markets more risk averse.
- Susan Schmidt warns changing data or silencing dissent mimics practices investors criticize in other countries.
Singling Out Economists Is Unusual
- Singling out individual economists is highly unusual and disrupts expected debate among bank analysts.
- Susan Schmidt says that disruption reduces certainty and could pull markets down from highs.
Adjust For Politically Influenced Data
- Investors should factor in higher skepticism when data or commentary appear politically influenced.
- Adjust portfolio risk tolerance because perceived data reliability loss tends to make markets more cautious.