Marketplace Morning Report Summary Episode: As Trump Disbands Economic Advisory Committees, Experts Raise Concerns
Release Date: March 25, 2025
Host: David Brancaccio

Disbanding of the Federal Economic Statistics Advisory Committee

Claudia Sahm, Chief Economist at New Century Advisors and creator of the Sahm Rule, voiced strong opposition to the Trump administration’s decision to dissolve the Federal Economic Statistics Advisory Committee. Sahm emphasized the committee's crucial role in ensuring the accuracy and timeliness of economic data.

"We want the best data we can have. And that committee was one resource that we had towards getting those data. And to see that taken away, it's a red flag."
— Claudia Sahm (01:20)

Sahm highlighted that the committee provided a platform for experts from academia and the private sector to advise on improving economic statistics. She argued that the committee's dissolution undermines transparency and the integrity of economic data, which is essential for informed decision-making by households, businesses, and the government.

"We need high quality statistics so that people trust the data. This committee, these are people who are really experts... It's a great way to make sure manipulation doesn't happen."
— Claudia Sahm (03:55)

The Trump administration declared that the committee’s mission was "fulfilled," a stance Sahm contested by pointing out the ever-evolving nature of the economy, especially with emerging sectors like artificial intelligence requiring continuous statistical oversight.

The Sahm Rule and Economic Recession Status

David Brancaccio introduced the Sahm Rule, an economic indicator developed by Claudia Sahm to determine in real-time whether the economy is in a recession. When prompted, Sahm confirmed:

"We are not in a recession right now."
— Claudia Sahm (04:56)

This segment provided listeners with an update on the current economic climate, reassuring that, according to this indicator, the U.S. had not slipped into a recession.

Market Reactions to Potential Tariff Changes

The episode reported on the financial markets' response to news that President Trump might withhold imposing tariffs on certain sectors, notably the auto industry. This potential policy shift led to significant stock movements:

• General Motors stock increased by 3.3%
• Ford rose by 2.5%
• Tesla, led by Elon Musk, surged nearly 12%

These reactions underscore the market's sensitivity to trade policy changes and their immediate impact on specific industries.

Wage Growth Among the Lowest Paid Workers

A comprehensive report from the Economic Policy Institute (EPI) was discussed, highlighting that the lowest 10% of workers in the U.S. experienced the fastest wage growth over the past five years. Adjusted for inflation, these workers saw their pay increase by more than 15% between 2019 and 2024.

Samantha Fields delved into the factors contributing to this wage growth, particularly the aftermath of the COVID-19 pandemic:

"A little bit choosier, which meant employers had to pay more. This happened across the economy for those in higher paying jobs, too, just not quite as much."
— Samantha Fields (06:33)

However, Brad Hirschbein from the Upjohn Institute for Employment Research cautioned that despite these wage gains, many low-wage workers continue to struggle due to inflation pressures:

"They tend to buy things that are more subject to inflation... Take rent, for example. We know that rent is a bigger share of people's budget at the bottom than at the top."
— Brad Hirschbein (07:06)

Hirschbein pointed out that rising costs, particularly in housing, have eroded the benefits of wage increases, leaving many low-income workers still facing financial hardships.

Conclusion

The episode of Marketplace Morning Report provided an in-depth analysis of the Trump administration's decision to disband an essential economic advisory committee, the implications for economic data transparency, current recession indicators, market responses to tariff policies, and the nuanced reality of wage growth among the lowest paid workers. Experts like Claudia Sahm and Brad Hirschbein offered critical insights into how these developments shape the broader economic landscape.

Produced by James Graham, Neal Morrow, Naomi Rainey, Arianna Rosas, Alex Schroeder, and Erica Soderstrom. Senior Producer: Meredith Garretson Morby in Los Angeles.