

Goldman Sachs Vice Chairman Rob Kaplan Talks Fed, Powell & Trump
Jul 25, 2025
Rob Kaplan, Vice Chairman of Goldman Sachs and former head of the Federal Reserve Bank of Dallas, shares his insights on the intersection of monetary policy and political pressure. He discusses the Federal Reserve's autonomy amidst Trump's push for interest rate cuts. Kaplan also analyzes the sluggish U.S. economic growth, the complexities of the labor market, and the impact of immigration on inflation. With rising debt and a challenging economic landscape, he emphasizes the importance of strong leadership at the Federal Reserve.
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Fed's Independence Ethic
- Federal Reserve officials strive to exclude political pressure from monetary policy decisions.
- This focus is due to an ingrained culture and ethic of independence within the Fed.
Sluggish Growth and Tariff Impact
- U.S. economic growth is solid but sluggish, with tight labor markets influenced by immigration and tariffs.
- Fed faces challenge determining if tariffs cause persistent inflation or temporary price changes.
Immigration and Inflation Dynamics
- Immigration policy has tightened labor supply, keeping wages firmer and unemployment sticky.
- Despite tariffs causing some inflation, a largely disinflationary environment may return over time.