The Journal.
Trump 2.0: Where Is The Economy Headed?
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.
25:46
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Quick takeaways
- Despite President Trump's controversial policies and consumer anxiety, core economic indicators like job growth remain stable.
- The tension between Trump's administration and the Federal Reserve over interest rates creates uncertainty, impacting market confidence and decision-making.
Deep dives
Trump's Tariff Challenges
Tariffs have become a contentious issue as they are losing public support and affecting Trump's approval ratings, particularly in relation to the economy. While Trump initially touted tariffs as a strategy to reinvigorate American manufacturing and reduce inflation, the actual outcomes appear mixed. Market reactions suggest that his unpredictable stance on tariffs is contributing to economic instability, leading to soaring discontent among consumers and investors. There is speculation that the president's proposed tariffs could serve as a significant tax increase and disrupt supply chains, but the immediate impacts on inflation and consumer spending remain unclear.
