Donald Trump Challenged by 'WSJ' as Editorial Board Deems President's Economy 'Tepid' After He Raved About Record Stock Prices

The Wall Street Journal editorial board is puncturing President Donald Trump’s favorite economic story.

Trump has pointed to record stock prices and the absence of a recession as proof that his policies are working.

But the Journal’s editorial board argued that the economy is not booming, calling it “tepid” after Commerce Department figures showed U.S. growth at 1.5 percent from April to June, below forecasts of about 2 percent.

The board said the economy “continues to plod along and is shrugging off the war in Iran,” but is still underperforming Treasury Secretary Scott Bessent’s 3 percent GDP growth target by half.

Investment management analyst Scott D. Martin, partner at Kingsview Wealth Management, said the source of the criticism matters less than the economic question it raises.

“Investors pay attention whenever respected market voices question whether economic momentum matches the narrative,” Martin said. “Markets ultimately respond to earnings, employment, inflation, consumer spending, and business investment, not political messaging.”

The WSJ’s board argued that Trump’s tax bill and deregulation could be producing stronger growth if not for the costs and uncertainty created by tariffs. Trump’s earlier sweeping tariff plan was struck down after the Supreme Court ruled in February that it had been implemented illegally, but he has since announced a new round of import levies on goods from more than 80 countries.

“Mr. Trump thinks that, with the stock market hitting records and the economy avoiding recession, his tariffs are working wonders,” the board wrote. But based on Bessent’s growth goal, it added, “the economy is underperforming by half.”

Martin said a “tepid” label changes the questions investors ask.

“Investors immediately begin asking whether corporate profits can continue growing at the pace currently reflected in stock prices,” he said.

Trump’s war in Iran has also weighed on the economy through gas prices and inflation, though the latest data suggests growth has held up better than some feared.

“Voters tend to judge the economy through their own experiences,” Martin pointed out.

“They notice whether groceries are affordable, whether borrowing costs are coming down, whether it's easier to buy a home, and whether their paychecks are keeping up with the cost of living,” he said.

“Criticism from a traditionally business-oriented editorial board can make it more difficult to convince skeptical voters that the economy is performing better than they believe it is,” he added.

“For investors, however, the focus should remain on the underlying fundamentals,” he continued. “Over time, the data — not the political narrative — will determine which story prevails."