The Daily Signal Victor Davis Hanson: Experts Were Wrong. The Economy’s Strong—But the Fed Won’t Budge.
Aug 1, 2025
Victor Davis Hanson dissects why mainstream media paints a bleak economic picture despite strong GDP growth and low inflation. He questions the Federal Reserve's stubbornness on interest rates, posing why they aren't being lowered with the economy performing well. The discussion challenges earlier recession forecasts that never came to fruition, highlighting discrepancies between expert predictions and actual market performance. It's a thought-provoking take on economic resilience and the role of policymakers.
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Unexpected Economic Strength
- The economy shows strong signs with a 3.0 GDP and a tolerable 2.4% annual inflation rate.
- Jobs reports are also positive, indicating overall economic health beyond expert predictions.
Fiscal Surplus Surprises Critics
- More money came into the Treasury than was spent in May, an unusual and positive fiscal event.
- This surplus counters common political skepticism about economic reports' accuracy.
Wrong Recession Predictions
- Experts wrongly predicted recession, high inflation, and market collapse amid tariffs announced by Trump.
- Contrary to those predictions, stock prices reached historic highs and the economy remained strong.
