The Journal. Trump 2.0: Where Is The Economy Headed?
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Apr 25, 2025 
Greg Ip, Chief Economics Commentator for The Wall Street Journal, dives into the current state of the U.S. economy amidst Trump's presidency. He discusses how surprisingly stable economic indicators contrast with public anxiety over tariffs and deportations. Despite political turmoil, consumer spending and hiring remain robust, yet confidence lags behind. The conversation also touches on the implications of trade policies for manufacturing and economic perception, exploring the disconnect between political narratives and real economic performance.
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Economy Shows Stability Despite Turmoil
- Economic data under Trump looks very similar to that under Biden with steady job growth and no major spending cuts.
- Tariffs expected to raise prices and inflation haven't yet shown significant impact in the economy.
Tariff Policy Creates Market Uncertainty
- The administration's tariff threats cause market volatility but are often walked back to calm markets.
- This push-pull creates policy uncertainty, leaving real economic effects unclear for now.
Tariff Effects Delayed by Inventory
- Even a halving of tariffs on Chinese imports would still impose significant costs and cause price increases.
- Current delays in price impact arise from inventory buildup and cautious corporate pricing behavior.