Balance of Power – "Trump Says Smart People Back Tariffs"

Podcast: Balance of Power (Bloomberg)
Air Date: December 10, 2025
Hosts: Joe Mathieu, Kailey Leinz
Key Guests: Christopher Smart, Rick Davis, Jeannie Shan Zaino, Gene Simmons

Overview

This episode of "Balance of Power" centers on President Trump's latest campaign push in Pennsylvania, his defense of tariffs as “a smart people” policy, and the broader debate over the U.S. economy, inflation, and Fed policy. Additional topics include political implications of recent races and an extended interview with Gene Simmons (of KISS fame) advocating for the American Music Fairness Act, music industry regulation, and AI.

The conversation offers insight into the economic consequences of tariffs, White House messaging discipline, political fallout from recent elections, and a passionate discussion about royalties for artists from one of rock’s most recognizable figures.

Key Segments & Discussion Points

President Trump's Pennsylvania Speech: Tariffs, Affordability, and Messaging

• Trump's Late-Night Social Media Blitz (00:55)
  Trump touts his work ethic, claims unparalleled achievements, and repeatedly highlights his performance in cognitive tests. He claims to have aced three cognitive exams "in front of large numbers of doctors and experts, most of whom I do not know."

  • Notable Quote:
    "There has never been a president that has worked as hard as me... My hours are the longest and my results are among the best." – Joe quoting Trump [00:55]

• Tariffs as the "Smart People" Policy (02:23)
  Trump asserts that only "smart people" understand the upside of tariffs, claiming they bring in “hundreds of billions of dollars.” He positions tariffs as central to U.S. economic strength, especially for farmers.

  • Notable Quote:
    "It's the smart people understand it. Other people are starting to learn, but the smart people really understand it." – Trump (quoted/replayed) [02:35]

• Analysis by Christopher Smart (03:06 – 05:53)
  Christopher Smart, former economic official, critically analyzes Trump’s claims:

  • Most economists believe tariff impacts are lagging; the bulk will appear in inflation stats next year.

  • Retailers like Walmart cannot indefinitely absorb extra costs from tariffs—price hikes are forthcoming.

  • Smart foresees headwinds for affordability arguments as tariffs phase through to consumers.

  • A labor supply crunch due to immigration crackdowns may add wage inflation to the economic mix.

  • Key Exchange:
    Joe Matthew: "You're telling me it's not about to get better, it's probably about to get worse." [04:02]
    Christopher Smart: "That's right...when people aren't sure that these tariffs are here to stay...they have to start pricing in the potential for more..." [04:20]

Fed Decision Anxiety & Political Crosscurrents

• Fed Dilemma, Rate Cuts, and Uncertainty (05:20 – 07:52)

  • With inflation falling significantly from its peak, the Fed is now in “the tricky bit” – choosing whether to keep cutting with tariffs still looming.

  • Christopher Smart notes Jay Powell’s challenge: lacking fresh data due to a government shutdown, and the increased politicization of the Fed.

  • Discussion around whether Kevin Hassett (Trump administration adviser) will be the next Fed chair, and if so, whether he can lead with impartiality.

  • Notable Quote:
    "It's a difficult time for investors to look at. The Fed drama in the background is on their minds, but I don't think it's at the top of the list right now." — Christopher Smart [07:57]

  • Fed Culture and Future:
    Internal divisions at the Fed are more pronounced than usual; the dot plot (forecast) will be closely watched for consensus vs. dispersion.

    • "It's very new, I think, for a Fed to look so divided." — Christopher Smart [08:57]

Political Panel: Campaign Messaging, Polls, and the Miami Race

• Trump's Campaign Rally Performance (13:22 – 16:06)
  Trump’s rally in Pennsylvania is dissected for its noisy, undisciplined messaging and use of affordability as a “hoax.”

  • Jeannie Shan Zaino argues Trump’s approach is backfiring, with voters not convinced by his framing.

    • "This is not working. And the polls show it." – Jeannie Shan Zaino [15:36]

  • Rick Davis notes the messaging discipline is lacking, and without Trump directly on the ballot, MAGA voters may not show up for midterms as needed.

• Rhetoric Shifts: Immigration Comments (17:54 – 20:58)
  Trump goes off-message, reviving derogatory comments about immigrants and certain countries, risking backlash among moderates and independents.

  • "He resorts to this kind of rhetoric when he's got nothing else to offer." – Jeannie Shan Zaino [19:20]
  • Miami mayoral race is cited, with immigration policies arguably hurting Republican candidates’ prospects.

• Interpreting the Miami Mayoral Result (20:58 – 24:09)
  Rick Davis sees it as a warning sign ("canary in the coal mine") for the GOP, though not as sweeping as last year’s Democratic statehouse victories.

  • "I think it's a wake up call. I don't think it compares to what we saw last November..." – Rick Davis [21:41]
  • Jeannie counters that Democrats’ messaging on issues like ICE raids is resonating across contests, showing Republican vulnerability.

Fed Cut Expectations (24:09 – 25:23)

• Anticipation of a Quarter-Point Rate Cut
  Rick Davis recommends the administration claim the cut as a victory.
  • "The White House should take a victory lap today if the rates get cut." – Rick Davis [25:15]

Extended Interview: Gene Simmons on the American Music Fairness Act, Music Business, and AI

• Advocacy for Artist Royalties (28:10 – 32:38) Gene Simmons delivers a forceful case for the American Music Fairness Act, highlighting the hypocrisy of U.S. radio making billions while artists receive nothing for AM/FM airplay (in contrast to practices abroad):

  • "The astonishing, stunning, and shameful fact is that no matter who you hear on AM and FM radio, they're getting zero pennies for the airplay." — Gene Simmons [29:23]
  • "Jimi Hendrix has never in his entire career or now, ever gotten paid a single penny when his music is played on AM and FM radio." [30:22]

• Insider Perspective on Industry Deals (36:15 – 37:36)
  Simmons briefly addresses the sale of KISS’s catalog and legacy, correcting the record on news reports and promising a bright, expansive future for the brand.

• AI in Music: Risks and Policy Needs (39:00 – 41:04) Simmons warns about the rise of AI-generated music, calling for robust federal (and ideally international) regulation:

  • "AI is a concern. If left unregulated, anything...you've got to have some parameters that we control instead of AI." – Gene Simmons [39:22]
  • "You need a federal law that encompasses the entire country. I would highly recommend, and I would hope, the entire planet...it's an issue for the UN." [40:17]

• Advice to Young Musicians (41:11) Simmons urges up-and-comers to have a fallback plan in a tough and changing industry.

Notable Quotes & Moments

• "There has never been a president that has worked as hard as me... My hours are the longest and my results are among the best."
  — Joe quoting Trump’s Truth Social post [00:55]

• "It's the smart people understand it. Other people are starting to learn, but the smart people really understand it."
  — Trump, on tariffs [02:35]

• "We're not getting our votes out. People aren't happy with what we're doing."
  — Rick Davis, on Republican turnout issues [21:41]

• "You should let me talk more. I can increase your [ratings]...More people will watch this instead of Spongebob Squarepants."
  — Gene Simmons, with characteristic flair [38:56]

Timestamps for Key Segments

• Trump’s Social Media Post/Cognitive Tests: 00:55 – 01:55
• Tariffs—“Smart People” and Economic Analysis: 02:23 – 05:53
• Fed Policy and Hassett’s Prospects: 05:20 – 11:34
• Trump's Speech & Campaign Messaging: 13:22 – 16:06
• Immigration and Miami Race Fallout: 17:54 – 24:09
• Fed Rate Cut Discussion: 24:09 – 25:23
• Gene Simmons on the American Music Fairness Act: 28:10 – 38:59
• AI Regulation in Music: 39:00 – 41:04
• Gene Simmons' Industry Advice: 41:11

Overall Tone & Style

Throughout, the hosts maintain an urgent, conversational tone, blending political analysis with humor and industry insight. Simmons infuses energy and directness, especially when advocating for artists’ rights and new music industry regulations. The political panel offers candid, sometimes wry, appraisals of both parties’ tactics and missteps.

Summary

This episode is a deep dive into the dynamics of 2025 U.S. politics and economics, with sharp commentary on Trump’s evolving political strategy, the realities of tariffs and inflation, and high-stakes Fed leadership decisions. The lively and incisive discussion with Gene Simmons adds unique perspective on music copyright, AI risks, and the intersection of pop culture and policy, underscoring the show’s timely blend of Washington and Wall Street with celebrity gravitas.