Trump's economic message undercut by his desire for lower interest rates - which typically signal a weak job market

[marmar]

Trump’s ‘golden age’ economic message undercut by his desire for much lower interest rates – which typically signal a weak jobs market
Published: October 27, 2025 8:18am EDT

Joshua Stillwagon
Associate Professor of Economics, Babson College


(The Conversation) President Donald Trump seems to want to have it both ways on the U.S. economy.

On the one hand, he recently said the economy is in its “golden age” and referred to the U.S. as the “hottest country anywhere in the world.”

Yet at the same time, he has outright demanded that the Federal Reserve sharply slash interest rates to fuel economic activity. And his recently handpicked governor, Stephen Miran, has led the charge in pushing for a bigger cut than preferred by his new colleagues at the Fed.

When an economy is strong, central banks typically don’t cut interest rates and may even raise them to avoid spurring inflation. And so to support his argument for large cuts, Miran has played up “downside risks” to the economy and a weakening labor market, contrasting with Trump’s talk of a “golden age.”

....(snip)....

The only credible rationale for that large of an interest rate cut, in the face of still-high inflation, is by believing the labor market is incredibly weak. According to the Fed’s preferred measure, the personal consumption expenditures index, inflation has been accelerating all summer and was 2.7% at the end of August, well above the Fed’s 2% target. ................(more)

https://theconversation.com/trumps-golden-age-economic-message-undercut-by-his-desire-for-much-lower-interest-rates-which-typically-signal-a-weak-jobs-market-266969

[Lovie777]

1. shithole and comrades will not report the truth about the economy......................

it's in a death spiral. American citizen have to deal with high prices and it's getting worse even before the shutdown. The cruelty of the current republican party is avoidable but they do not care.

[gab13by13]

2. Krasnov has been consistent

in his quest to crash the dollar and strengthen Crypto, he doesn't give a shit about the economy.

[AnnaLee]

3. It is all math fraud

He wants to reduce the on the debt projections as much as possible to be able to say his losing policies are winning. You first balloon the debt, then make it, somewhat artificially, appear to be rapidly lowered. It would help justify his adding the large regressive sale tax to replace the lowered income taxes. The risk to inflation and dollar devaluation be darned. George Bush did this too, but his target was the Social Security trust fund depletion rate. (When GWB was President, the Boomers were in their highest earning days and the fund was growing so, even if it was projected to deplete in 2052 or so, he could better justify putting it into Wall Street.) Although GWB is on the other side of the Republican Party divide, the Heritage Foundation has been an influence on Republican politicians consistently. This low interest for projection calculations thing is a theme. And, yes, sometime the economy needs a lower interest rate, but the driver is not supposed to be political talking points.