Here’s a bold claim: the U.S. economy is thriving under President Trump, even as the Federal Reserve maintains some of the highest interest rates in the world. But here’s where it gets controversial—is this success truly a result of Trump’s policies, or are there other forces at play? Kevin Hassett, Director of the National Economic Council, is adamant that the current economic boom is a direct outcome of Trump’s leadership. In a recent appearance on CNBC’s Squawk Box, Hassett declared, ‘The economy is booming right now because of Trump’s policies, not the Federal Reserve.’ He didn’t hold back when criticizing the Fed, pointing out that their tight monetary policy, including sky-high interest rates, has been a source of frustration for the President. And this is the part most people miss: Hassett argues that the Fed’s actions have little to do with the Department of Justice’s pursuit of a criminal indictment against Fed Chair Jerome Powell—a move that has sparked widespread debate.
When asked if the Fed deserved any credit for not hindering economic growth, Hassett pushed back, calling for ‘a little bit more introspection’ from central bankers. He highlighted the 9.1% year-over-year inflation peak in 2022—the highest since 1981—as a critical failure. ‘It’d be nice to know how that happened and to ensure it doesn’t happen again,’ he remarked, subtly inviting a discussion on the Fed’s accountability. Hassett also pointed to strong GDP growth, particularly the 5% surge in the fourth quarter, as proof that Trump’s policies are working. But here’s the counterpoint: not everyone agrees.
The latest jobs report from the U.S. Bureau of Labor Statistics tells a different story. In 2025, employers added just 584,000 jobs—a steep decline from the 2 million jobs added 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. ‘This reflects the direct effects of tariffs on manufacturing, transportation, and distribution,’ he stated in a recent post on X. Joel Griffith, a Senior Fellow at Advancing American Freedom, echoed this sentiment, noting that the manufacturing sector has suffered eight consecutive months of job losses since Trump’s ‘Liberation Day’ tariffs were announced. ‘Trump’s tariffs are hammering the very sector they were meant to save,’ Griffith observed.
So, is the economy booming despite the Fed’s policies, or are Trump’s tariffs undermining growth? Here’s the thought-provoking question: Can an economy truly thrive under high interest rates and controversial trade policies, or are we seeing a short-term illusion of success? Share your thoughts in the comments—let’s spark a debate!
