Mike Gleason: It is my great privilege now to be joined by Steve Forbes, Editor-in-Chief of Forbes Magazine, CEO of Forbes Media, and author of many fabulous books, including Flat Tax Revolution, How Capitalism Will Save Us, and Money: How the Destruction of the Dollar Threatens the Global Economy and What We Can Do About It. He’s also a two-time presidential candidate, having run in the Republican primaries in both 1996 and in the year 2000.
Mr. Forbes, I really want to thank you for your time today and for joining us again. It’s a tremendous honor to have you back on, welcome.
Steve Forbes: Good to be with you. Thank you.
Mike Gleason: Well, let’s start with one of the big topics on Wall Street these days, that being tariffs and trade. The president has been working to rewrite trade deals and reduce the trade deficit. Recently, the dispute with China escalated and tariffs were increased to 25%. There has been some volatility in the equity markets, but so far, at least, investors seem to be optimistic that a deal will be reached, or perhaps trade tensions don’t matter as much as they should, because the Federal Reserve is already signaling they will ride to the rescue.
Do you think the tariffs will be effective, and we wonder if America’s hand is as strong as the president thinks it is, or are people really prepared for much higher prices as the extra costs associated with tariffs get passed along? What are your thoughts there?