Bloomberg Businessweek EU’s Von der Leyen to Meet Trump in Bid to Clinch Trade Deal
Jul 25, 2025
Mike McKee, an expert in international economics and policy, joins Christina Padgett from Moody's and Google Cloud's COO Francis deSouza. They dive into the upcoming trade deal discussions between the EU and the U.S., exploring tariffs and their potential impact on inflation and manufacturing. The conversation also touches on the shifting relationship between the government and the Federal Reserve, the influence of AI on business growth, and the challenges of financial leverage in today's economy, highlighting how technology is reshaping industries.
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Episode notes
Delayed Impact of Trump’s Tariffs
- The tariffs imposed by President Trump have not fully taken effect, delaying significant economic impact.
- When tariffs do come into effect, they will increase inflation and pressure company margins.
Limits to Firing Fed Chair Powell
- President Trump cannot currently fire Fed Chair Jay Powell without a causal reason.
- The ongoing public criticism damages the Federal Reserve's institutional credibility more than Powell personally.
Fed Independence Is Crucial
- Lack of Fed independence risks higher financing costs due to credibility loss with creditors.
- A politically influenced Fed chair could undermine long-term economic stability and inflation control.
