WSJ's conservative editors take a shot at Trump and his 'tariff wet blanket'

The conservative editors of the Wall Street Journal's editorial section skewered President Donald Trump on Wednesday for continuing to pressure Federal Reserve Chair Jerome Powell into reducing interest rates while ignoring the bigger issue lurking over the U.S. economy.

"President Trump’s tariffs are producing a mild stagflation," the editorial board wrote.

According to the latest economic data, economic growth has slowed and inflation has crept up due to Trump's tariffs. Housing starts hit a five-year low in May, and the Federal Reserve increased its unemployment outlook to 4.5% from 4.4%.

The softening U.S. economy has become a cause for concern among monetary policymakers. At the beginning of the year, the Federal Reserve predicted it would cut interest rates multiple times. As of Wednesday, the central bank plans to cut rates just two times this year, although that could change as new economic data is collected.

Powell said in his remarks after the Federal Open Market Committee meeting on Wednesday that the committee will "continue to monitor the implications of incoming information for the economic outlook."

"The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments," Powell said.

The Journal's editorial board offered a more concise solution to the complex problem the labor market faces.

"Lifting [Trump's] tariff wet blanket would do far more for growth than a 25-basis point cut in the Fed’s target interest rate," the editorial board wrote.