President Donald Trump has “got his wish” of lower interest rates amid his ongoing battle to seize control of the Federal Reserve, the Wall Street Journal’s conservative editorial board wrote on Wednesday.
But the Federal Open Market Committee’s move came with “an implicit warning about what this might mean for the economy,” and Trump has to now own whatever happens as a result, it warned.
Read the full editorial at The Wall Street Journal.
“It may be that everything works out fine: inflation drifts downward after a brief price bump from tariffs, the economy booms despite tariffs and a looming labor shortage, the housing market enters a new golden age, and financial markets gallop happily off into the artificial-intelligence sunset,” said the board, which has in recent months repeatedly argued that Trump’s mass deportation program and trade policies may nuke the economy.
“But if Mr. Trump is wrong, voters will notice sustained inflation and the lack of gains in real wages,” it concluded. “Having staked so much on his political assault on the Fed, Mr. Trump owns the outcome now for good or ill.”
