Marketplace Podcast Summary Episode: House Brands
Release Date: January 24, 2025
Host: Kai Ryssdal

Economic Policies and Trade Tariffs

Tariffs Implementation and Delays

In this episode, host Kai Ryssdal engages with Ana Swanson from The New York Times and David Gura from Bloomberg to discuss the immediate economic policies following the recent presidential inauguration. A significant focus is on the anticipated tariffs that were promised on day one of the presidency but have not yet been implemented.

• Ana Swanson highlights the delay in imposing tariffs:
  “The president had said on Truth Social that he would do tariffs on Canada and Mexico and China on day one... But we didn't see tariffs on day one” (01:33).

• David Gura elaborates on the president’s commitment to tariffs despite the initial delay:
  “Trump still really believes in tariffs. I do expect to see them” (02:37).

Strategic Tariff Plans

Ana Swanson explains that although tariffs were not immediately enforced, the president has signed an executive order requesting comprehensive trade reports, which could lay the groundwork for more strategic and legally fortified tariff implementations in the future.

• Ana Swanson:
  “The reports are going to give him a lot of ammo to pursue different trade actions... tariffs that are more comprehensive and strategic” (02:37).

Impact on Global Trade Relations

The conversation shifts to the implications of these tariffs on international relations, especially with Europe.

• Ana Swanson notes a shift in U.S. relations with Europe:
  “It's a big shift from the Biden administration where the United States, Europe, were working more closely as allies to take on issues with China” (04:00).

• Kai Ryssdal adds context on European responses:
  “Ursula von der Leyen... said... Europe, we're on our own... the global trade order... is no more” (04:23).

Federal Reserve and Interest Rates

Presidential Influence on the Federal Reserve

A significant portion of the discussion revolves around President Trump's public critiques of the Federal Reserve Chair, Jay Powell, and his demands for lower interest rates.

• David Gura comments on the potential tension:
  “This president talking an awful lot about how he knows interest rates better than the current Fed chairman” (05:23).

• Kai Ryssdal and David Gura engage in a light-hearted segment questioning what Jay Powell might be thinking under this pressure, emphasizing the Fed’s stance on avoiding political influence (06:10).

Fed's Response to Tariffs and Inflation

Ana Swanson discusses how the Fed might respond to the new tariffs and their potential inflationary effects.

• Ana Swanson:
  “There is a debate about whether the Fed should consider tariffs as one-time price quotes or treat them as inflationary and act against them” (07:03).

Rise of Private Labels in Retail

Growth in Store Brand Sales

Kristen Schwab from Marketplace reports on the surge in private label sales, with brands like Target’s Everspring and Costco’s Kirkland reaching all-time highs in 2024.

• Kristen Schwab:
  “Brand sales hit an all-time high in 2024” (08:29).

Consumer Trust and Product Categories

The discussion delves into why consumers are increasingly opting for store brands, particularly in categories traditionally dominated by national brands.

• Matt Hammery, a grocery consultant at Alex Partners, observes a shift towards prepared and chilled foods:
  “There’s a big uptick in customers being willing and interested to buy prepared foods, chilled foods... fresher, just warm it up, ready to eat” (09:42).

• Jan Benedikt Steenkamp, Professor of Marketing at UNC Chapel Hill, points out challenges in personal care products:
  “Personal care is an area generics have yet to conquer” (10:58).

Emotional vs. Rational Purchases

Kai Ryssdal notes the difference in consumer behavior between logical purchases and those driven by emotion, such as personal care products.

• Kai Ryssdal:
  “Private labels are still sold mostly based on logic... in personal care, people are actually purchasing a dream” (10:58).

Entrepreneurship and Community Engagement

Feature on Aries Archive

Kristen Schwab introduces Kennedy Tweeten, the owner of Aries Archive in Mankato, Minnesota, who creates game day apparel from thrifted and reworked materials.

• Kennedy Tweeten shares her journey:
  “I started the Aries Archive right after I had my son... I’m excited about shifting more into hockey” (09:29, 12:31).

• Challenges Faced:
  “The biggest challenge is being able to make enough material and have enough content to post off season” (09:53).

Market Updates and Financial Insights

Stock Market Performance

Kai Ryssdal provides a brief overview of the week's stock market performance, highlighting movements in major indices and specific companies.

• Industrials, NASDAQ, and S&P 500 saw varied performances, with significant mentions of:
  • Boeing's decline due to lower-than-expected fourth-quarter losses.
  • United Airlines gaining after raised price targets.
  • Texas Instruments experiencing a 7.5% drop following profit forecasts.

Community Spotlight: Cumberland County, Tennessee

Trail Building and Active Retirement

Kai Ryssdal interviews John Conrad, a retired engineer in Cumberland County, TN, who spearheads trail-building initiatives to enhance community engagement among retirees.

• John Conrad:
  “I have a knack for finding talented people and exploiting them for my benefit” (20:10).

• Community Impact:
  “I'm very pleased and proud of the fact that the trails help to unite” (25:53).

Balancing Retiree and Long-term Residents

The episode explores the dynamics between long-term residents of Crossville and newer retirees in Fairfield Glade, emphasizing how community projects like trail building foster unity.

• John Conrad:
  “The trails help to unite. There's no metrics for measuring it, but I just feel that it's doing good” (25:53).

Closing Remarks and Future Segments

Kai hints at upcoming series and episodes, including "The Age of Work," which will explore the evolving American workforce amid demographic shifts.

• Kai Ryssdal:
  “The Age of Work Episode one [is] coming on Monday” (25:53).

Notable Quotes:

• "Trump still really believes in tariffs. I do expect to see them." — Ana Swanson (02:37)

• "Private labels are still sold mostly based on logic... in personal care, people are actually purchasing a dream." — Kai Ryssdal (10:58)

• "I'm very pleased and proud of the fact that the trails help to unite." — John Conrad (25:53)

This episode of Marketplace delves into the intricate interplay between new economic policies, consumer behavior trends, and community-driven entrepreneurship, providing listeners with a comprehensive understanding of the current economic landscape and its broader societal impacts.