Victor Davis Hanson: Experts Were Wrong. The Economy’s Strong—But the Fed Won’t Budge.

The Daily Signal

News, Government, Politics, Daily News

4.6 • 1.2K Ratings

🗓️ 1 August 2025

⏱️ 9 minutes

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Summary

So why are media outlets still talking down the economy? And why is Chairman of the Federal Reserve Jerome Powell refusing to cut interest rates, despite earlier recession warnings that never materialized? Victor Davis Hanson breaks it all down on today’s episode of “Victor Davis Hanson: In His Own Words.” “Remember that The Wall Street Journal, New York Times, Washington Post, and our main media organs all told us in May when Donald Trump was talking about art of the deal tariffs, … we were going to have high inflation, stagflation, bad job growth, static GDP, and a trade war along with a Wall Street collapse, basically a recession. Well, wall Street stock prices are at historical highs. Every one of those predictions was wrong. “If [Powell] is worried about a trade war, and tariffs and soft job growth, which was predictive but didn't happen, why don't you lower interest rates? And the fact is that if you look at the interest rates that he did cut right before the 2024 election and his all over the map, attitude toward interest rates today, there is no logic because if he's worried that the economy inflation might— it's gone up one 10th of an point and it's steaming and then he's going to what? Keep interest rates that high?” 👉Don’t miss out on Victor’s latest videos by subscribing to The Daily Signal today. You’ll be notified every time a new piece of content drops: https://www.youtube.com/dailysignal?sub_confirmation=1 👉If you can’t get enough of Victor Davis Hanson from The Daily Signal, subscribe to his official YouTube channel: https://www.youtube.com/@victordavishanson7273 👉He’s also the host of “The Victor Davis Hanson Show,” available wherever you prefer to watch or listen. Links to the show and exclusive content are available on his website: https://victorhanson.com The Daily Signal cannot continue to tell stories, like this one, without the support of our viewers: https://secured.dailysignal.com/ (0:000 Economic Health (0:54) Current Economic Indicators (2:14) Reactions to Economic Data (3:17 )Interest Rates and Federal Reserve (6:07) Trump's Economic Strategies (8:00) Final Thoughts Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:29.7	If you look at the three or four main categories that adjudicate the health or the malady
0:34.6	of an economy, they're pretty good. GDP came in at 3.0. That was not
0:40.2	predicted to be that high. So inflation is still tolerable. So you have a good GDP, you have a good
0:45.4	jobs report. Of course, we expect the left to discount it. Chuck Schumer said that these figures
0:51.1	are all bogus, even though they're from non-administration sources,
0:55.0	government bureaucracies. Bottom line, things are going very well. All of the experts were wrong,
1:01.0	and yet the experts do not admit they were wrong. They say we were wrong privately, but we're
1:07.0	going to be proved right because either we hope or we expect the economy to do poorly.
1:13.0	Hello, this is Victor Davis Hanson for the Daily Signal.
1:27.1	I'd like to talk about the economy here at the beginning of August. We've just finished July. We have some of the July reports, but mostly they're still from June. If you look at the three or four main categories that adjudicate the health or the malady of an economy, they're pretty good. GDP came in at 3.0. That was not
1:49.8	predicted to be that high. The inflation rate may have just come out for July, and there's different
1:57.9	reports, but it's about 2.7. It was 2.6 in May. January was 3.0. For the year,
2:06.6	it's about 2.4. So inflation is still tolerable. It's not growing, an annualized rate at 2.4.
2:15.7	So you have a good GDP, you have a good inflation rate, you have a good jobs report.
2:21.4	We're about 4.1 unemployment in the month of June. We picked up 150,000 new jobs that wasn't
2:29.0	predicted. As far as money coming into the Treasury and going out, we had a historical May.
	...

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