President Donald Trump is facing fresh criticism for his approach to handling the U.S. economy, with Financial Times U.S. National Editor Ed Luce stating that Trump has been “schooled” by recent market responses—but is refusing to learn from it.
The Situation Room with hosts Wolf Blitzer and Pamela Brown, Luce addressed growing concerns about economic instability and investor uncertainty under Trump’s leadership. The discussion centred on a new report by the International Monetary Fund (IMF), which presents a cautious assessment of the country’s economic outlook.
According to the IMF, the United States is projected to grow by 1.8% this year—a number that might seem stable at first glance but is causing worry among economists due to growing tensions from trade wars and erratic policy decisions.
Luce said, “The 1.8% U.S. growth this year is still on the high side, surprisingly. I expected more of a downgrade given the current climate. The trade war’s resumption and instability make it difficult for investors to plan.”
However, beyond the growth numbers, Luce believes the real issue is trust—or the lack thereof. “What this report confirms is a deeper, more dramatic realization by the markets. Economic policy under Trump is seen as unpredictable and difficult to navigate. Investors are finding it hard to put their money into a system where the rules can change any moment,” he said.
Brown brought up a key point that many economists have been echoing recently—that the current economic strain is largely a result of human actions. Unlike the pandemic or other natural disasters, this financial uncertainty stems from policy decisions and could still be corrected if addressed appropriately.
She asked, “Does that make it easier to change direction now, since this isn’t something like COVID-19 where we had no control?”
Luce replied, “That’s what makes it all the more frustrating. The last 2-3 weeks have shown us the markets reacting strongly to Trump’s ongoing trade war rhetoric and his comments on the Federal Reserve. He’s being schooled by market reactions, but he’s not learning anything from it.”
On Monday morning, Trump made headlines again by demanding the Federal Reserve cut interest rates, while also suggesting—once more—that he should have the power to fire Fed Chair Jerome Powell. Luce pointed out that the president doesn’t have the legal authority to do so, but the threat alone was enough to spark panic.
“That statement caused one of the biggest single-day market sell-offs in years,” Luce emphasised. “The markets are responding to his instability. It’s not just about interest rates or trade anymore. It’s about whether the president can be trusted not to cause chaos.”
Many investors and analysts say they’ve grown tired of trying to read between the lines of Trump’s public statements. One day, he signals openness to talks with China, and the next, he’s imposing new tariffs. One moment he praises the Fed, and the next he’s threatening to fire its head. The inconsistency, experts say, has created an environment where long-term planning is nearly impossible.
“This is not how stable economies are supposed to work,” Luce said. “You need a predictable environment where investors feel confident. Right now, the U.S. is offering the opposite of that.”
The IMF’s report may not have slashed forecasts as severely as some feared, but the message was clear—international bodies and financial experts alike are concerned about the long-term direction of America’s economic policy.
For many, the core problem lies in leadership. While the White House insists that aggressive trade tactics and pressure on the Fed are necessary tools, critics argue that these moves are backfiring, creating uncertainty and weakening global confidence in the U.S. economy.
Luce concluded the CNN segment by reinforcing that the problem isn’t just poor strategy—it’s a refusal to adapt. “He’s been schooled. The markets have shown what they think. But he’s not learning. That’s the most worrying sign of all.”
With 2025 election campaigns heating up and economic performance expected to play a significant role in voter decision-making, experts warn that if no course correction is made soon, the damage could extend beyond markets—it could impact job growth, small businesses, and consumer spending nationwide.
In the coming months, all eyes will be on Washington, waiting to see if the administration will adjust its approach or continue on a path that many say is leading to avoidable turmoil.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
Jon King is an experienced journalist with 3 years of experience in the field. With a strong background in investigative reporting, Jon is known for his in-depth coverage of crime news, finance news, local news, and USA news. Currently working with Mikeandjonpodcast, Jon brings his sharp investigative skills, where he provides timely updates and analysis on a wide range of topics. His commitment to delivering accurate and impactful news has earned him a reputation for providing insightful and comprehensive stories that resonate with his audience.
