Trump is beefin' with Powell

Summary

Marketplace Morning Report: "Trump is beefin' with Powell" Summary

Release Date: April 17, 2025
Host: David Brancaccio, Marketplace

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1. President Trump's Criticism of Federal Reserve Chair Jerome Powell

Timestamp [00:01]–[01:28]

The episode opens with David Brancaccio addressing President Donald Trump's public criticism of Jerome Powell, the Chair of the Federal Reserve. Following Powell's cautious approach to interest rate adjustments amid market volatility and recession fears tied to Trump's tariff policies, the President took to social media to express his dissatisfaction.

• Trump’s Tweet on Powell:
  “Always too late and wrong,” and claims that “the US is getting rich on tariffs.”
  (00:01)

Economists have responded by highlighting that tariffs act as a tax on American consumers, potentially increasing inflation, though they may also bolster domestic manufacturing. Trump further urged Powell to emulate the European Central Bank by lowering interest rates, noting that Europe had already done so in response to what he terms America’s “erratic tariff policy.”

Henry Epp from Marketplace provides insights into Powell’s recent statements:

• Powell on Fed Independence:
  “We're never going to be influenced by any political pressure... we will do what we do strictly without consideration of political or any other extraneous factors.”
  (01:04)

Powell emphasized the Federal Reserve's commitment to maintaining independence amidst political challenges, especially in light of ongoing Supreme Court decisions regarding Presidential authority over independent agency officials.

2. Rising Retirement Age Among American Men

Timestamp [02:28]–[03:24]

Shifting focus, the report discusses a new study from the Center for Retirement Research at Boston College, highlighting that the average retirement age for men in the U.S. has plateaued after decades of steady increases.

Marketplace’s Kaylee Wells explains that the study concentrated solely on men due to the significant and prolonged participation of women in the workforce over the past fifty years, which has continuously elevated the average retirement age for women.

• David Deming on Increased Working Years:
  “In the old days, if you were in corporate America, you would be forced out by a certain age and couldn't get into your 60s or older.”
  (03:02)

Additionally, Richard Johnson from the Urban Institute attributes this trend to the decline of pension plans, leading individuals to work longer to maximize contributions to retirement accounts.

• Johnson on Pension Shifts:
  “The shift away from pensions has played out already, and... the pandemic era conversation about work-life balance has encouraged more people to retire as soon as they can afford it.”
  (03:24)

3. NASA’s Artemis Program and Ambitions for Mars Colonization

Timestamp [03:24]–[06:37]

The episode transitions to space exploration, focusing on the Artemis program and President Trump's nominee for NASA leadership, Jared Isaacman, who has prioritized sending American astronauts to Mars. This ambition surpasses the current goal of returning humans to the Moon under Artemis.

• Jared Isaacman’s Senate Testimony:
  Prioritizes Mars missions over the established Artemis lunar objectives.
  (03:52)

Daniel Ackerman discusses the historical context of NASA’s budgets, noting that the current fiscal commitment to Artemis is modest compared to the Apollo era:

• Scott Pace on Apollo vs. Artemis Funding:
  “Fiscal year 1964, the US was spending 1.1% of the GDP on space. Okay, that is never going to happen again.”
  (04:18)

Casey Dreier of the Planetary Society critiques Artemis’s limited budget, likening it to a “GDP rounding error,” which hinders the program’s ability to address unexpected challenges, unlike the more generously funded Apollo missions.

• Dreier on Artemis's Budget Constraints:
  “Instead, NASA is spending what amounts to a GDP rounding error on the Artemis program.”
  (04:45)

Geoffrey Hoffman, a former astronaut and MIT professor, underscores the vulnerabilities caused by inadequate funding, highlighting past mission delays and the inability to implement multiple solutions during crises.

• Hoffman on Contingency Planning:
  “In Apollo, there was enough money that if you ran into a problem, you could spend money on two alternate solutions...”
  (05:08)

Despite criticisms regarding the high costs and delays, Lori Garver, former NASA Deputy Administrator, emphasizes the geopolitical motivations behind Artemis, framing it as a strategic contest with China for lunar supremacy.

• Garver on Geopolitical Stakes:
  “Ultimately, we've decided geopolitically it's a contest.”
  (06:21)

This lunar race is seen as crucial for maintaining American leadership in space exploration, with implications for future Mars missions and the broader economy dependent on satellite technology.

4. Introduction to "Financially Inclined" Podcast

Timestamp [07:07]

The report concludes by highlighting a new Marketplace podcast titled "Financially Inclined," hosted by Jannelli Espinal. This podcast aims to provide trustworthy financial advice, tackling topics such as job offer negotiations, affordable college choices, and discussing money matters with peers.

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Conclusion

This episode of Marketplace Morning Report delves into significant current events, from the political tensions surrounding the Federal Reserve’s policies under President Trump’s administration to societal shifts in retirement planning and the strategic endeavors of NASA’s space missions. By providing expert insights and direct quotes, the report offers listeners a comprehensive understanding of the economic and geopolitical landscapes shaping the United States.

Transcript

[David Brancaccio]

Can a president actually fire the head of America's central bank? I'm David Brancaccio in Los Angeles. After the Federal Reserve chief took a wait and see posture yesterday on interest rates amid market disruptions and the increased talk of recession linked to President Trump's tariffs, the President went after the Fed chief this morning. On social media today, Trump wrote Jerome Powell as, quote, always too late and wrong, and claimed that the US Is getting rich on tariffs. Economists see tariffs as a tax on Americans that can increase inflation, but they can also encourage made in America. The President went on to write that Powell should have lowered rates like the Europeans. The European Central bank today did indeed lower its interest rates in the face of what many Europeans see as America's erratic tariff policy. Trump's post concludes Powell's termination cannot come fast enough. It's not clear if that means when Powell's term expires next year or if Trump would try to fire him, which Powell has indicated before would be illegal. Marketplace's Henry Epp joins us with what the Fed chair was saying yesterday.

[Henry Epp]

Yeah. Powell was asked yesterday about the Fed's independence, and he acknowledged an ongoing court case over Trump's firing of two officials in separate independent government agencies. The Supreme Court has allowed those firings to stand for now. Powell said he did not think the outcome of that case would pertain to the Fed. He also addressed the issue of Fed independence more broadly. Again, this was before the President's post this morning.

[David Brancaccio]

We're never going to be influenced by any political pressure. People can say whatever they want, that's fine, that's not a problem. But we will do what we do strictly without consideration of political or any other extraneous factors. Now, Henry Powell also addressed the possible effects of the president's tariff policy on the economy. Where is Powell on this now?

[Henry Epp]

Yeah, he made clear that the Fed is still in wait and see mode on the overall impacts of tariffs on inflation markets and the broader economy. In other words, he gave no indication that the central bank would rush to cut interest rates or buy up securities, as it has in the past to, you know, financial crises that the country has faced. He also cautioned the tariffs announced by the Trump administration are far higher than the Fed anticipated. He said that'll likely cause at least a temporary rise in inflation. He said exactly how the effects of tariffs play out could put the Fed's dual mandate goals in tension. Those goals are stable prices and maximum employment.

[David Brancaccio]

Henry, thank you. The average age for a man to retire in the US has been rising steadily since the 1990s. But now that is leveling off, according to new info from the center for Retirement Research at Boston College. And why are we only talking about men here? Marketplace's Kaylee Wells has that the study.

[Kaylee Wells]

Only looked at men because women have only been a major factor throughout the workforce for about 50 years, and their retirement age has basically been going up the whole time. Men's retirement age increased partly because people can work longer, says certified financial planner David Deming.

[David Deming]

In the old days, if you were in corporate America, you would be forced out by a certain age and couldn't get into your 60s or older.

[Kaylee Wells]

The other reason? Fewer of us get pensions, says Richard Johnson with the Urban Institute. So now the more you work, the.

[David Brancaccio]

More you can contribute to your retirement plan, the more your employer contributes to your retirement plan.

[Kaylee Wells]

Johnson says the shift away from pensions has played out already, and he says the pandemic era conversation about work life balance has encouraged more people to retire as soon as they can afford it. I'm Kayleigh Wells for Marketplace.

[David Brancaccio]

American astronauts on Mars. That's a priority for President Trump's nominee to lead NASA, Jared Isaacman, according to his Senate testimony last week. That's above and beyond NASA's current Artemis program to get humans back to the moon. Critics, including Isaac Menemson, have complained about the high cost of Artemis 100 billion spent so far. But Congress continues to support and fund a lunar return. Here's Daniel Ackerman.

[Daniel Ackerman]

It's been more than 50 years since anyone walked on the moon. It just hasn't been in the budget, says Scott Pace with the Space Policy Institute at George Washington university.

[David Deming]

Fiscal year 1964, the US was spending 1.1% of the GDP on space. Okay, that is never going to happen again.

[Daniel Ackerman]

Instead, NASA is spending what amounts to a GDP rounding error on the Artemis program, says Casey Dreier of the Planetary Society.

[David Deming]

This is going back to the moon on the cheap.

[Daniel Ackerman]

Artemis started in the first Trump administration, and Dreier says it's been politically durable.

[David Deming]

No NASA Return to the Moon program has survived a presidential transition ever.

[Daniel Ackerman]

But here's Artemis. The program has suffered its share of surprise setbacks, according to a former astronaut who knows about that kind of thing?

[Geoffrey Hoffman]

Actually, on my first flight, I did the first unplanned what they call a contingency spacewalk in NASA's history, when he's.

[Daniel Ackerman]

Not attempting emergency satellite repair in the void of space. Geoffrey Hoffman is a professor at mit, and he says the relative shoestring budget of Artemis is one cause of the.

[Geoffrey Hoffman]

Delays back in Apollo, there was enough money that if you ran into a problem, you could spend money on two alternate solutions to that problem and choose the best one. That's not the case for Artemis, he says.

[Daniel Ackerman]

NASA has worked for years to solve a heat shield issue. The current plan is to land on the moon in 2027. That's despite calls from critics to cancel Artemis because it's still taxpayer money and the private sector could do it all more efficiently. Hoffman, though, sees things differently.

[Geoffrey Hoffman]

There was a lot of criticism in the early space program. Why are we spending all this money to put satellites into orbit? And I mean, our economy now depends on satellites, he says.

[Daniel Ackerman]

The moon could one day be a source of minerals or a staging point for missions to Mars. And there's another big reason many in Congress still support Artemis, says former NASA deputy administrator Lori Garver.

[Lori Garver]

Ultimately, we've decided geopolitically it's a contest.

[David Brancaccio]

We now have ginned up. We're in a race with China to.

[Daniel Ackerman]

Go to the moon, and these days, competing with China is one thing Washington seems more than willing to spend money on. I'm Daniel Ackerman for Marketplace, and there's.

[David Brancaccio]

Gold for someone every time you tap, swipe or insert. Two titans of paying for things without cash today announce their marriage Global Payments Inc. To Wedding World pay for nearly $23 billion. In Los Angeles, I'm David Brancaccio. You're listening to the Marketplace Morning report from APM American Public Media.

[Lori Garver]

If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Jannelli Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined Wherever you get your podcasts.