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

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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