Economist Steve Moore explained on Fox Business Thursday how President Donald Trump’s policies have contributed to a significant shift in the U.S. economy, especially in terms of inflation and wages.
Trump achieved an economic win as the personal consumption expenditures (PCE) index showed inflation dropped to its lowest level in four years in April 2025. During an appearance on “Kudlow,” Moore said that Trump’s actions are primarily deflationary, leading to positive results for Americans.
“Everything that Trump is doing short of the tariffs is deflationary. Now, I do think tariffs in isolation would cause, you would expect some of the costs of tariffs to be passed on to consumers. But so much of the rest of what Trump is doing is deflationary, Larry,” Moore told host Larry Kudlow.
Moore pointed out that this is a marked improvement compared to the 6%, 7%, and 8% inflation figures seen during the tenure of former President Joe Biden.
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“I think it’s the remarkable part of this story is we got 2.7% inflation, and the media and the Democrats have gone crazy. Oh, my God, 2.7% inflation. This is the end of the world when we had 6%, 7, 8, 9% inflation under Biden. And now all of a sudden, they are inflation hawks. And same thing on the deficit. You saw those numbers we had in the hotline where the revenues are surging, Larry, because the economy is doing better,” Moore said.
Moore also highlighted the positive effect on the federal deficit, with revenues surging as the economy grows.
“When you go back to this inflation story, I want to make one other quick point, Larry. Yes, 2.7% is a little too high. We want that number to be closer to 2.5%. But the big part of the story is wages, Larry, are running at 3.5% to 4%,” Moore said. “And so what Americans really care about is whether their wages are rising faster than the inflation rate. And right now, the answer to that question is yes, they are. Americans are doing better today financially.”
The Consumer Price Index (CPI) increased by 2.7% year-over-year in June, aligning with expectations, according to the Bureau of Labor Statistics. However, the producer price index (PPI) came in below expectations when excluding food, energy, and trade. (RELATED: ‘Unchanged, Zero!’: CNBC Editor Lauds ‘Very Good News’ About Inflation Under Trump)
Economists polled by Dow Jones had forecasted a 0.2% rise in wholesale prices for June, CNBC reported. The stable wholesale prices, combined with CPI data, suggest that Trump’s tariffs are having only a minor impact on the economy and the cost of goods and services. Despite warnings from corporate media that tariffs would lead to sharp price hikes, inflation dropped to a four-year low in May.
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