WSJ: “Tariffs Are Biggest Policy Mistake In Decades”

From the Wall Street Journal editorial board:

If the White House wanted a test of how firing Jerome Powell would go over in the markets, it succeeded on Monday. U.S. stocks and the dollar plunged while yields on long-term Treasurys climbed after President Trump renewed his attacks on the Federal Reserve Chairman.

Mr. Trump thinks he can bully everyone into submission, but he can’t bully Adam Smith, who deals in reality. Markets know tariffs are taxes, and taxes are anti-growth. The Trump tariffs are the biggest economic policy mistake in decades, and extending the 2017 tax reform and deregulation may not compensate for all the damage.

Smart Presidents pay attention to market signals and adapt. The adaptation now would be to negotiate a quick end to the tariff barrage. Claim some trade-deal victories, and call it a day. But markets are spooked because they don’t know if Mr. Trump listens to anyone but his own impulses.

Read the full editorial.

WSJ: If the White House wanted a test of how firing Jerome Powell would go over in the markets, it succeeded on Monday. U.S. stocks and the dollar plunged while yields on long-term Treasurys climbed… https://t.co/P45AzJCdIm

— Andrew Ackerman (@amacker) April 22, 2025