The Wall Street Journal, a newspaper known for its conservative views, recently took a strong stance against Donald Trump’s economic ideas.
In an editorial published on Thursday, the newspaper’s editorial board raised serious doubts about Trump’s understanding of how money works in the economy.
This criticism came after Trump posted on his social media platform, Truth Social, where he called for lower interest rates.
He claimed that lower rates would work well alongside the tariffs he has placed on imported goods, which are currently on hold. However, this statement was made at a time when inflation the rate at which prices for goods and services rise—is already increasing, making his comments seem out of touch with the current economic situation.
The editorial board asked a simple but important question: “Does President Trump understand money?” They weren’t talking about cash or personal finances but rather the bigger picture how the supply of money in the economy, the cost of borrowing money (which is shown through interest rates), and the effects of these factors on inflation all work together.
The board didn’t hold back in their answer, saying it seems Trump doesn’t fully understand these concepts.
The board also explained that Trump’s push for higher tariffs taxes on imported goods would likely lead to higher prices for those goods.
They suggested that Trump’s focus on attacking interest rates might be a way to distract people from the fact that his policies could make things more expensive. In recent weeks, the Wall Street Journal has been critical of several of Trump’s actions, including his plan to create a sovereign wealth fund, his decision to take away security protection from
