Economist Jessica Riedl on Trump’s tariffs, a looming debt crisis, and ‘spending cut theater’

Conservative economist Jessica Riedl joins Margaret Hoover to talk about tariffs, tax cuts, and the threat of the growing national debt. She explains why President Trump’s tariffs have not yet upended the economy and why she believes American consumers will ultimately bear the costs of Trump’s policies.

Riedl, a senior fellow at the Manhattan Institute, assesses the One Big Beautiful Bill Act and argues it is unlikely to produce the rapid economic growth the White House has predicted. She discusses a potential debt crisis and the reforms to Medicare and Social Security that could help avert it, as well as the political obstacles standing in the way.

Riedl has spent more than 20 years in Republican economic policy circles–including advising Mitt Romney and Marco Rubio’s presidential campaigns–and she reflects on how the party’s embrace of populism under Trump has left traditional conservatives like her politically “homeless.”

Riedl emphasizes the importance of the Federal Reserve’s independence, envisions how GOP economic policy may evolve after Trump leaves office, and expresses some hope for the country’s fiscal future.

Support for Firing Line with Margaret Hoover is provided by Robert Granieri, The Tepper Foundation, Vanessa and Henry Cornell, The Fairweather Foundation, and Pritzker Military Foundation.