WSJ Opinion: Free Expression Tariffs, Stagflation and the New AI-driven Economy
Aug 13, 2025
Glenn Hutchins, a financier and philanthropist, discusses the economic implications of Trump's tariffs and emerging inflation trends. He dives into how the Federal Reserve is navigating these challenges while maintaining independence. Hutchins also explores the transformative impact of AI on job markets and sectors resistant to change. Furthermore, he evaluates the Democratic Party's shifting strategies in response to electoral losses and the need to connect with voters on pressing issues like cost of living and class divisions.
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Tariffs Add Inflation And Slow Growth
- Glenn Hutchins says tariffs act like a real-life stress test that adds inflation and reduces efficiency.
- He estimates tariffs raise inflation ~0.5 percentage points and cut U.S. growth by ~0.5 points.
Fed Should Prioritize Inflation Control
- Hutchins urges the Fed to prioritize controlling inflation unless unemployment rises substantially above prior benchmarks.
- He expects only a modest rate cut, perhaps 25 basis points, early next year if inflation stays elevated.
Tech, Not Trade, Drove Economic Disruption
- Hutchins argues technology drove the past 30 years' change more than trade and created stark winners and losers.
- He warns tariffs and trade policy don't address the deeper disruption coming from AI.
