Ben Shapiro: “If you really want a booming economy, you should hope that the Supreme Court strikes down President Trump's tariffs”
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From the September 18, 2025, edition of The Daily Wire's The Ben Shapiro Show
BEN SHAPIRO (HOST): So, again, the markets kind of roiled at this. They didn't jump on this news. I think President Trump was expecting the markets to jump on the news. They really didn't. The reason being that Powell is acknowledging a slowing jobs market, and that is the reason why he is having to lower the interest rates. So he's not doing it because the job markets are robust and inflation is coming down. He's doing it because inflation is coming down and the job markets are, in fact, not robust. And so the markets are reading that.
The Wall Street Journal points out that President Trump now has control of the interest rates. He's got the Federal Reserve policy he wants. And so whatever comes next, it is very difficult to blame on Joe Biden.
Quote: In their summary of economic projections released after this week's meeting, Fed officials anticipate two more 25-point rate cuts this year and another in 2026. At the same, SEP projections can see that inflation is proving more persistent than anticipated. They now expect personal consumption expenditure inflation to hit 2.6% next year. That's up from 2.4% predicted in June. They don't actually expect to hit the rate of 2% until 2028.
So even though inflation is still 50% higher, 40% higher than it should be, they're afraid that the economy is slowing significantly.
As The Wall Street Journal points out, Powell struggled to articulate how monetary policy might make a difference. Neither of the negatives he mentioned, tariffs and President Trump's immigration crackdown, can be offset by lowering interest rates. Otherwise, he said, it's not a bad economy. Booming stock valuations and investor enthusiasm for low-quality debt, among other symptoms, suggest financial conditions aren't especially tight as it is.
They're making the point basically that the underlying factors in the economy that are weak are not going be cured by cutting the interest rates. I think that is largely true. And what you are likely to see is more of a bubble on the tech side. If that bubble bursts, it will be a worse downside. If you really want a booming economy, you should hope that the Supreme Court strikes down President Trump's tariffs. It really is that simple at this point.