Marketplace Morning Report The president versus the Fed chair
Jul 17, 2025
Tension brews as the President pressures the Federal Reserve Chair for lower interest rates, raising questions about potential repercussions. The discussion uncovers how tariffs impact the economy, revealing that American businesses bear the brunt of costs, which trickle down to consumers. Meanwhile, the travel industry struggles amidst economic headwinds, as airlines show signs of stabilization and Airbnb operators report a downturn. The insights highlight the intricate balance between politics, consumer behavior, and market forces.
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Fed Chair's Independence Explained
- The Federal Reserve Chair Jerome Powell's interest rate decisions are independent from presidential wishes.
- President Trump's criticism and possible firing of Powell may not result in lower interest rates as the Fed committee is autonomous.
Fed HQ Renovations A Necessity
- The Fed's DC headquarters renovation hasn't been done since the 1930s and was direly needed.
- Former Fed historian Gary Richardson recalled the original state with issues like scalding water and poor accessibility.
Tariffs Cost Mostly Borne By U.S.
- Increasing tariffs are ultimately paid by U.S. importers and passed on to consumers.
- Foreign exporters rarely absorb tariffs, as shown by import prices rising despite tariffs.