Trump’s Battle with the Fed Explained | The Real Eisman Playbook Episode 25

42 snips

Sep 15, 2025

Rob Kaplan, Vice Chairman of Goldman Sachs and former president of the Dallas Fed, dives into the tensions between President Trump and the Fed, shedding light on monetary policy challenges. He discusses the impact of tariffs on industries and the significance of adapting investment banking strategies. Kaplan shares his experiences leading the Dallas Fed and presents the contrasting leadership styles of former Fed chairs Yellen and Powell. Plus, insights on navigating mergers and acquisitions, along with Goldman Sachs' cultural renaissance, make for a captivating listen.

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INSIGHT

Fed Balances Growth And Inflation

Rob Kaplan argues the Fed must balance weak labor markets with sticky inflation and cannot cut rates aggressively despite political pressure.
He expects a modest 25bp cut in September and warns getting to neutral risks reigniting inflation.

INSIGHT

Where Neutral Rates Likely Sit

Kaplan estimates neutral fed funds near 3.5% given a real neutral rate around 0.75% and current inflation near 2.75%-3%.
He says the Fed has limited room to cut and may only cut 75–100bp total to reach neutral.

ADVICE

Ignore Political Noise At The Fed

Kaplan says Fed staff should ignore political pressure and focus on data, supervision, and structural drivers of the economy.
He believes Chair Powell is urging his team to make the best decisions and let the criticism follow.

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In this episode of The Real Eisman Playbook, Steve Eisman sits down with Rob Kaplan, Vice Chairman of Goldman Sachs. The two of them discuss a variety of topics, including President Trump’s ongoing pressure on the Fed, what makes a good investment banker, Rob’s history with Goldman Sachs and the Dallas Fed, and much more.

00:00 - Intro
01:15 - Introducing Rob Kaplan
02:30 - Trump's Pressure on the Fed
12:20 - The Impact of Tariffs
13:58 - The Difference in Fed Chairs
16:56 - What Does It Mean to be the Head of the Dallas Fed?
23:50 - What Makes a Good Investment Banker?
27:14 - Lessons From Deals That Work and Deals That Don't
30:34 - Goldman Sachs
42:17 - The Difficulties of Running a Firm Today
45:08 - Do We Need a M&A Wave in the United States?

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