Slate Daily Feed What Next | Trump’s Getting His Economy. Yikes.
Sep 18, 2025
Justin Wolfers, an economist and professor at the University of Michigan, dives into the recent Fed rate cut amid a struggling economy. He explains that the cut is merely a reaction to weak data, not a solution for rising unemployment and stagflation risks. The conversation highlights how ICE raids threaten technology transfer and foreign investment, further complicating the U.S. manufacturing landscape. Wolfers also discusses the unpredictable impacts of tariffs, job growth issues, and the potential long-term harm from cronyism.
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Fed Cut Reflects Data, Not Politics
- The Fed's 25 basis point cut matched expectations and reflected changing economic signals rather than presidential pressure.
- Justin Wolfers says the Fed moved because data worsened, not because of Donald Trump's demands.
Stagflation Flags In Fed Language
- The Fed's statement flipped from cautious optimism to cautious pessimism as unemployment rose and job growth fell.
- Wolfers warns these signs point to stagflation entering the economy.
Hyundai Raid Shows Tech Transfer Loss
- Wolfers recounts an ICE raid at a Hyundai battery plant where hundreds, including skilled South Korean workers, were detained.
- He uses that example to show how immigration enforcement disrupted technology transfer critical to building U.S. battery capacity.