What Next | Daily News and Analysis Trump’s Getting His Economy. Yikes.
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Sep 18, 2025 
Justin Wolfers, an economist and professor at the University of Michigan, dives into the recent Fed rate cut prompted by economic concerns. He discusses the slowing job market and rising inflation, stressing that a minor rate reduction won't address deeper issues. The conversation also covers the chaos surrounding ICE raids affecting tech transfer and the impact of tariff policies, highlighting the resulting investor distrust and job growth challenges. Wolfers paints a picture of the economic landscape and its future risks.
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Fed Cut Was Predictable, Not A Political Win
- The Fed cut rates by 25 basis points as expected, signaling a dull, predictable decision rather than a political victory.
- Justin Wolfers argues this small cut won't fix deep economic weakness and rising signs of stagflation.
Fed’s Language Shift Signals Stagflation
- The Fed revised its opening paragraph from cautious optimism to cautious pessimism, noting rising unemployment and slowing job growth.
- Wolfers says this mix of stagnation plus rising inflation signals that stagflation has arrived.
Hyundai Raid Illustrates Lost Technology Transfer
- Wolfers describes the ICE raid at a Hyundai EV battery plant and how Korean workers were central to technology transfer.
- He explains those workers were teaching Americans the 'how' of battery production on-site.