Contrary to conventional economic wisdom and warnings from critics on the left that cutting interest rates while imposing broad tariffs would stoke inflation, the Trump administration is achieving all three simultaneously — with the Federal Reserve lowering rates, significant tariffs in place, and inflation cooling to 2.7%.
The same crew also warned that Donald Trump’s tariffs would tank the stock market, but the stock market just keeps hitting new highs. Wages are also up, contrary to the predictions of the president’s opponents.
Democrats also predicted higher budget deficits under Trump. Wrong again.
U.S. budget deficits have dropped, with fiscal year 2025 seeing a decrease to around $1.8 trillion (down 2-3% from FY 2024) due to higher revenues from individual income taxes and record tariffs alongside substantial budget cuts.
Rob Kerchner
Valencia
