Impolitic with John Heilemann Jason Furman: Jerome Powell, Resistance Hero
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Jan 16, 2026 
In this engaging discussion, Harvard economist Jason Furman, former chair of the Council of Economic Advisers, dives into the state of the U.S. economy as Trump begins his second term. He meticulously fact-checks Trump's economic claims, revealing the realities behind wage growth and tariffs. Furman explores the political ramifications of Jerome Powell's stance against Trump’s attacks on the Fed, highlighting the unusual bipartisan support for Powell. The conversation also touches on global concerns ahead of Davos and critiques Trump's housing and healthcare proposals.
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Tariffs Raised Costs, Not Manufacturing Jobs
- Tariffs aimed to restore manufacturing, cut deficits, and raise revenue but failed to revive jobs.
- Tariffs raised prices and costs, and revenue largely comes from U.S. consumers and firms, not foreign payers.
Tariffs Increased Inflation, But Less Than Feared
- Tariffs added roughly 0.5 percentage point to inflation, less than worst-case forecasts.
- Firms absorbed more of the cost than expected, passing on perhaps a third to consumers so far.
Powell's Response Galvanized Support
- DOJ subpoenas to the Fed transformed into a bipartisan defense of Fed independence.
- Powell's rare direct statement rallied broad political and market support, strengthening the Fed short-term.