Marketplace Morning Report: "Going deeper on the thinking of the Fed's newest voice"

Date: September 23, 2025
Host: David Brancaccio
Special Guest: Julia Coronado, Economist, Founder of Macropolicy Perspectives
Other Contributors: Theo Leggatt (BBC), Daniel Ackerman (Marketplace), Mike Constable (Cable Consultant), Kevin Fraser (UT Austin)

Episode Overview

This fast-paced episode dives into significant economic news:

• The Federal Reserve’s internal debate over interest rates, with focus on new appointee Stephen Miron
• The impact of tariffs and immigration policy on inflation and economic growth
• A major cyber attack immobilizing Jaguar Land Rover’s production
• The vulnerability of the global undersea cable network

1. The Federal Reserve’s Newest Voice and Policy Debates

Segment Start: 01:06

Key Points:

• Stephen Miron, a Trump ally, is temporarily on the Fed’s Board of Governors.
• In a recent speech, Miron advocated for a much larger rate cut than the central bank delivered, framing immigration enforcement as a curative for inflation.
  • He suggests stricter immigration controls would ease housing demand, lower prices, and curb inflation, especially given trade tariffs.

Julia Coronado Responds (01:48)

• Coronado quickly critiques Miron's stance, grounded in economic research:

  • “All the research shows the opposite, that actually immigrants disproportionately help us build housing, and so there's a supply effect as well as a demand effect. So that assertion is just contrary to the evidence.” (01:48)
  • On inflation: “His assertions on inflation are contrary to the fact that inflation is still running close to 3%. And it's actually ticked up recently, not down, and it's ticked up because of tariffs. So… the arguments are sort of just assuming that everything will be fine rather than based on what we're seeing in the data.” (01:48)

• Coronado highlights the complexity around both housing supply and demand, noting immigrants' significant role in helping meet housing needs.

The Bigger Picture: OECD Tariff Warning (02:28)

• Host (Brancaccio): Notes new OECD (Organization for Economic Cooperation and Development) forecasts showing U.S. economic growth will slow significantly, partly due to tariffs, with 2025 growth predicted at 1.8%, dropping to 1.5% next year.
  • “We haven’t seen the full negative effects of tariffs on the world economy and the U.S. economy.” (02:28)

Coronado’s Take:

• "We still have tariffs to come and we haven't seen the full effect there... their [consumers’] purchasing power will be reduced. And that is a global phenomenon, not just the U.S. of course… everyone around the world will feel that.” (02:53)

2. Jaguar Land Rover Cyber Attack Shuts Down Production

Segment Start: 03:39

Key Points:

• Jaguar Land Rover (JLR) has closed factories due to a major cyber attack, halting all car production.

• Financial Impact: Estimated $2.3 billion in lost sales and $160 million in lost profits thus far.

  • Reporter Theo Leggatt (BBC): “At the end of August, it was forced to shut down the IT networks, which underpin virtually every aspect of its production and has been unable to build any cars since. But JLR sits at the heart of a complex web of suppliers, many of them heavily reliant on the carmaker. Unions and politicians have warned that if the shutdown continues for much longer, some may not survive.” (04:03)

• Insurance Concerns: Reports indicate JLR may not have finalized cyber attack insurance, leaving them exposed. (04:33)

3. The Vulnerability of Global Undersea Internet Cables

Segment Start: 06:03

Key Points:

• Submarine Networks World Conference in Singapore is drawing attention to the global digital infrastructure under threat.
• Significance: More than 95% of all internet traffic and about $10 trillion/day in financial transactions rely on these cables.
  • Mike Constable, cable consultant: “Subsea cables really drive the global economy.” (06:29)
  • “$10 trillion worth of financial transactions race around the world every day.” (06:38)

Threats to Cables:

• Majority of damages come from accidents: “primarily fishing. Damage from anchors is quite a significant one as well. So together those make up around 80% of all problems…” (Mike Constable, 06:55)
• Other risks include natural disasters (underwater rock slides) and state-sponsored sabotage, particularly by Russia.

Security Challenges:

• Cables are mostly owned by private sector "hyperscalers" (Microsoft, Amazon, Google, Meta).

• Kevin Fraser (UT Austin): "The lowest hanging fruit is merely reducing the odds of people going near these cables"—suggests governments could do more. (07:57)

• In crowded “high-traffic” zones, redundancy (laying more cables) is seen as the solution.

  • “We have about 600 cables right now, and I think we need to drastically increase the number...” (08:13)

• Repair Capacity:

  • Constable: “While we're investing billions into new cable networks. We aren't balancing that investment into the ships that look after those cable networks, he says.” (08:33)
  • There are only a few dozen repair ships worldwide for nearly a million miles of cable.

4. Notable Quotes & Moments

• Julia Coronado (on immigration and housing):

  • “All the research shows the opposite, that actually immigrants disproportionately help us build housing, and so there's a supply effect as well as a demand effect. So that assertion is just contrary to the evidence.” (01:48)

• Theo Leggatt (on JLR shutdown):

  • “But JLR sits at the heart of a complex web of suppliers, many of them heavily reliant on the carmaker. Unions and politicians have warned that if the shutdown continues for much longer, some may not survive.” (04:03)

• Mike Constable (on undersea cables):

  • “With Infra analytics, subsea cables really drive the global economy.” (06:29)
  • “Damage from anchors is quite a significant one as well. So together those make up sort of around 80% of all problems we have.” (06:55)
  • “While we're investing billions into new cable networks, we aren't balancing that investment into the ships that look after those cable networks.” (08:33)

• Kevin Fraser (on public-private role):

  • “The lowest hanging fruit is merely reducing the odds of people going near these cables, he says.” (07:57)
  • “We have about 600 cables right now, and I think we need to drastically increase the number of cables.” (08:13)

5. Segment Timestamps

• Fed and Rates/Immigration Debate: 01:06 – 03:37
• Jaguar Land Rover Cyber Attack: 03:39 – 05:01
• Undersea Cable Vulnerability: 06:03 – 08:51

Tone and Style

The episode keeps a brisk, analytical tone, balancing succinct news recaps with expert commentary. The host moves fluidly between economic policy debates, urgent business news, and infrastructure concerns, using clear language without jargon.

Summary

In under ten minutes, this episode delivers a snapshot of big economic questions:

• The latest splits in Fed thinking, particularly around immigration and inflation;
• The cascading fallout from a cyber attack in the auto sector;
• Growing anxieties over the physical infrastructure the global digital economy depends on.

Throughout, guests and reporters offer clear, research-backed analysis—making this a must-listen for anyone who wants the latest pulse on how economic policy, cybersecurity, and global infrastructure intersect.