Marketplace All-in-One Let's check in with the Fed
Jul 31, 2025
Nancy Marshall-Genzer, Marketplace's correspondent in Washington, D.C., unpacks the Federal Reserve's recent decision to keep interest rates unchanged amid political pressure from President Trump. She discusses the tension between monetary policy and political influence, revealing internal disagreements within the Fed. The conversation also takes a light-hearted turn as they share delightful anecdotes about gardening, including the joys of harvesting raspberries and dealing with pesky wildlife. It's an intriguing blend of economic analysis and personal storytelling!
AI Snips
Chapters
Transcript
Episode notes
Fed's Rate Decision and Inflation
- Federal Reserve Chair Jerome Powell is cautious about cutting rates because inflation hasn’t returned to the 2% target yet.
- The Fed faces conflicting risks from tariffs affecting employment and inflation, creating division among members.
Rare Fed Dissent Over Tariffs
- Two Fed governors dissented, voting for a quarter percentage point rate cut due to concerns tariffs cause temporary inflation.
- Disagreement stems from tariffs possibly weakening the economy or raising inflation, requiring differing monetary responses.
Fed Governors Believe Inflation Temporary
- Governor Bowman and Waller believe tariff-driven inflation is temporary and shouldn’t prevent rate cuts.
- Waller, a candidate to replace Powell, insists his dissent was economic, not political.