Welcome to the Wall Street Week newsletter, bringing you stories of capitalism about things you need to know, but even more things you need to think about. I’m David Westin, and this week we examined what new Trump administration policies could mean for investors, talking with BlackRock's Rick Rieder about the federal deficit and with PIMCO's Libby Cantrill about tariffs. If you're not yet a subscriber, sign up here for this newsletter.

Rieder: Economy in ‘Incredible Shape,’ Except for That Debt Burden

As President Trump moves back into the Oval Office, we asked Rick Rieder, BlackRock CIO of global fixed income and head of fundamental fixed income and global allocation investment, what investors should anticipate this time around. Overall, he sees a lot of potential good coming our way: Continued above-trend growth, favorable fiscal policies, less regulation and more of that "American exceptionalism."

Meanwhile, he said, increased productivity from innovation (like generative artificial intelligence) should keep inflation from getting out of control.

One thing Rieder is concerned about is the federal deficit and the Trump administration’s plans to get things under control, at least over time.

Cantrill: ‘Market Just Views Tariffs as a Problem’

One of the things that President Trump has promised us in his second term is more tariffs -- both across the board and targeted at countries such as China, Mexico and Canada. Some of those around him have suggested that this may in part be a negotiating technique, but judging from the last time, we shouldn't doubt that he means what he says. Which raises the question of what the ultimate goal of those tariffs will be.

PIMCO's head of US public policy, Libby Cantrill, says the returning president has gotten the attention of some lawmakers on Capitol Hill about the potential revenue boost that could come with his plan.

• Bloomberg Wall Street Week is live Fridays at 6 p.m. New York time. Watch on Bloomberg Television, on the Terminal at TV and on YouTube; or listen to the show on Bloomberg Radio and RADI.
• Catch the show Saturdays at 10 a.m. New York time and Sundays at 9 a.m., and find other re-airings through your local listings.
• Daily editions of Wall Street Week are live weekdays at 10:40 a.m. New York time. You can watch full episodes on demand or subscribe to the Wall Street Week podcast on Spotify or Apple.

• Economics Daily for what the changing landscape means for policymakers, investors and you
• Energy Daily for a daily guide to the energy and commodities markets that power the global economy
• Tech In Depth for analysis and scoops about the business of technology
• Washington Edition for exclusive coverage on how the worlds of money and politics intersect in the US capital

Explore all Bloomberg newsletters.