Here’s a bold claim: the U.S. economy is thriving under President Trump, despite the Federal Reserve’s aggressive interest rate hikes—some of the highest in the world. But here’s where it gets controversial: is this economic boom truly a result of Trump’s policies, or are there other forces at play? Kevin Hassett, Director of the National Economic Council, firmly believes it’s the former. In a recent appearance on CNBC’s Squawk Box, Hassett argued that the economy’s strength is a direct outcome of Trump’s strategies, not the Fed’s actions. He even pointed to the Fed’s tight monetary policy as a source of frustration for the President, though he clarified this isn’t tied to the Department of Justice’s recent threats against Fed Chair Jerome Powell.
When asked if the Fed deserved any credit for not hindering growth, Hassett pushed back, calling for more introspection from central bankers. He highlighted the 9.1% year-over-year inflation peak in 2022—the highest since 1981—as a misstep that needs addressing. ‘It’d be nice to know how that happened and ensure it doesn’t happen again,’ he remarked. Hassett also cited robust GDP growth, surpassing 5% in the fourth quarter, as proof that Trump’s policies are effective.
But here’s the part most people miss: while the administration touts strong growth, the latest jobs report tells a different story. In 2025, employers added just 584,000 jobs—a sharp decline from 2 million in 2024—and wage growth hit its weakest point since the early 2000s, outside of a recession. Mark Zandi, Chief Economist at Moody’s Analytics, places the blame squarely on Trump’s trade and tariff policies. ‘The tariffs are directly hurting manufacturing, transportation, and distribution,’ he stated on X. Joel Griffith, a Senior Fellow at Advancing American Freedom, echoed this sentiment, noting eight consecutive months of job losses in manufacturing since Trump’s ‘Liberation Day’ tariffs were announced. ‘The very sector Trump aimed to save is now suffering,’ Griffith observed.
So, what’s the real story here? Is the economy booming because of Trump’s policies, or are tariffs and trade wars undermining progress? And what role, if any, should the Fed take in this narrative? Let’s spark a discussion—do you think Trump’s policies are driving economic success, or are there deeper issues at play? Share your thoughts below!
