Episode summary
Trump Made Calls to Warsh in Latest Sign of Bid to Influence Fed | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · Hosts: Carol Massar, Tim Stenovec · Guests: Mike McKee, Enda Curran, Hema Parmar, Matt Winkler, Adam Zambanini
Summary
The episode opens on the reporting that President Trump has been speaking by phone with Fed chair Kevin Warsh, a sign of continued political pressure on the central bank even as the White House says Trump is giving Warsh space and respecting Fed independence. The conversation turns to whether this is unusual, how much it matters if Warsh is only one vote, and how much the next inflation and labor-market releases could shape the Fed’s path before Jackson Hole and the September meeting.
The discussion then shifts to hedge fund manager Leopold Ashenbrenner and the rapid rebound of his fund after a near collapse. The host and guests describe how the firm paid down margin calls with help from Citadel, has reduced leverage, and is now leaning more into private investments, including a reported $400 million stake in a private company. The segment frames the episode as a case study in how concentrated, levered AI trades can swing violently even when broader AI exposure remains hot.
Later, the show looks at Alphabet’s huge bond sale and the broader AI capex race. A guest says Alphabet needs more funding because spending is rising fast enough that operating cash flow no longer covers it, while noting the company’s scale and balance sheet make demand easy to attract. The final segment turns to Trex and the housing market, where the company says high mortgage rates are freezing turnover but helping repair-and-remodel demand as homeowners stay put and invest in outdoor living.
Key takeaways
- The host and guests said Trump’s calls with Kevin Warsh are notable less for the calls themselves than for the political pressure and transparency concerns around the Fed.
- A Bloomberg reporter said the next jobs, CPI, and PCE releases will determine whether the market narrative shifts back toward rate moves rather than Fed chatter.
- The guest said Leopold Ashenbrenner’s fund has de-levered after its near collapse and is now putting more capital into private positions, including a reported $400 million investment.
- The guest said Alphabet’s AI buildout is now so capital-intensive that operating cash flow alone no longer covers planned spending, which is why bond issuance is becoming recurring.
- Trex’s CEO said high mortgage rates are keeping people in homes longer, supporting repair-and-remodel demand and making the company’s wood-to-composite conversion strategy more important.
Notable quotes
“the frequency is unusual in recent years. It used to be that the president's felt very comfortable calling up Fed chairs or having them come in”
“they took off all the leverage when they paid uh they paid off their um margin calls with this chunk of money they got from Citadel”
“we are looking at a $300 billion capex number just for Alphabet and it cannot be financed with their operating cash flow anymore”
“we're 95% repair model. So we still have a lot of people when it comes to those interest rates sitting on 3%”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is Bloomberg Business Week Daily. Reporting from the magazine that helps global leaders stay ahead with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Business Week Daily podcast with Carol Masser and Tim Stenbec on Bloomberg Radio.
All right, folks. Hey, Chair Walsh. It's President Trump calling. I'm not sure it goes down like that. — I don't I don't know. I don't think he calls him chair. — He calls him Kev. — I don't know. I don't know. We We don't know how it goes down. Well, we do know that. Does
He call him Donnie talking? I I bet he calls him Mr. President.
I'm sure he calls him Mr. President. We're just having some fun.
Uh we're going to have more fun with Bloomberg TV and radio international economist and policy correspondent Michael McKe. He joins us here in our studio in the Bloomberg News Washington DC bureau and current Bloomberg News senior Federal Reserve reporter. And you and Josh Green reporting that President Trump has spoken by phone with Fed chair Kevin Worsh since Worsh took the role inquiring about forecasts, opinions.
What else did you find out?
So we do know that they have spoken as you say on the telephone time. on the telephone has been described as irregular since Chairman Walsh took up the job in May. Uh we don't know if they have discussed monetary policy per se.
Um but the issues here are less and Mike will know more than I but less that the president and chairman have spoken on the phone per se. It's more about of course the lack of disclosure and the backdrop being all of the political pressure on the Fed that I think is drawing so much scrutiny and attention on this now.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- fed independence
- donald trump influence
- federal reserve leadership
- hedge fund activity
- manufacturing outlook
Companies and tickers mentioned
- TREX
- Trex
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Businessweek Daily
-
Bloomberg Businessweek Weekend - November 13th, 2026 | Bloomberg Businessweek -
Inside Jensen Huang’s Final Hours as Nvidia CEO | Bloomberg Businessweek -
Jensen Huang's Exit Kicks Off Nvidia Strategy Reset | Bloomberg Businessweek -
Special Episode: Bobby Jain on Why He Chose Millennium Again | Bloomberg Businessweek -
Bloomberg Businessweek Daily Podcast: Jensen’s Nvidia Departure -
Take-Two Releasing Long-Awaited Grand Theft Auto VI Next Week | Bloomberg Businessweek
Bloomberg Businessweek Daily, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
