Economic Insights from Steve Moore on Trump’s Policies
Economist Steve Moore discussed on Thursday how President Donald Trump’s policies have notably influenced the US economy, especially regarding inflation and wages.
He pointed out that Trump celebrated an economic success when the Personal Consumption Expenditure (PCE) index revealed that inflation in April 2025 declined to its lowest level in four years. During his appearance on “Kudlow,” Moore emphasized that Trump’s actions were mostly deflationary, benefiting American citizens.
“All the tariffs that Trump implemented act in a deflationary way. I think that isolated tariffs might lead to certain effects. It’s reasonable to expect some of the tariff costs will be passed on to consumers,” Moore explained.
He remarked that the current economy shows significant improvement when compared to the 6%, 7%, and 8% inflation rates observed during former President Joe Biden’s term.
Moore highlighted an interesting point: “What stands out is that we saw 2.7% inflation, and the media, along with Democrats, reacted strongly. They claimed that 2.7% inflation is catastrophic, while we previously experienced inflation rates of 6%, 7%, 8%, and even 9% under Biden.”
Additionally, he noted that the economic growth has positively impacted the federal deficit, citing a surge in revenues.
“Returning to the inflation discussion, I want to say one more thing. Yes, 2.7% is somewhat high. I’d prefer it to be closer to 2.5%. What’s really important to Americans is whether their wages are increasing at a rate that outpaces inflation. And currently, they are. People are doing better financially nowadays,” Moore stated.
The Consumer Price Index (CPI) increased by 2.7% year-on-year in June, aligning with expectations, according to the Bureau of Labor Statistics. However, the producer price index (PPI) fell short of expectations when food, energy, and trade were excluded.
Economists surveyed by Dow Jones had predicted a 0.2% increase in wholesale prices in June, as reported by CNBC. The steady wholesale prices, when viewed alongside CPI data, indicate that Trump’s tariffs have had minimal impact on the economy and the pricing of goods and services. Despite concerns from media sources that tariffs might cause significant price jumps, inflation dropped to a four-year low in May.
