{"id":2571729,"date":"2026-02-20T06:00:02","date_gmt":"2026-02-20T11:00:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-goldilocks-first-year-for-trump-2-0\/"},"modified":"2026-02-20T06:03:45","modified_gmt":"2026-02-20T11:03:45","slug":"a-goldilocks-first-year-for-trump-2-0","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-goldilocks-first-year-for-trump-2-0\/","title":{"rendered":"A Goldilocks first year for Trump 2.0"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fa-goldilocks-first-year-for-trump-2-0%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2571729&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The washington Examiner piece by economics columnist tiana Lowe Doescher argues that Donald Trump\u2019s first year back in office has produced a \u201cGoldilocks\u201d economy: strong growth, falling inflation, and a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-trips-on-the-border\/\" title=\"Biden Trips on the Border\">tight labor market<\/a> that argues against aggressive rate cuts. Key points include:<\/p>\n<p>&#8211; The Federal Reserve held the federal funds rate at 3.5%\u20133.75% in its January 2026 meeting, after three rate cuts in 2025, despite calls to ease further. The unemployment rate sits around 4.3%, near full employment.<\/p>\n<p>&#8211; Inflation has been trending down: <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-aims-to-downplay-inflation-as-government-pushes-more-big-spending-bills\/\" title=\"Biden Aims To Downplay Inflation As Government Pushes More Big Spending Bills\">consumer price inflation<\/a> around 2.4% in January, with core inflation at about 2.5%. The article links this decline to deficit reduction and deregulation, along with supply-side reforms from Trump\u2019s agenda.<\/p>\n<p>&#8211; The economy is said to be growing north of 4% with productivity near 5%, while wage growth in real terms is up about 1.9%. Deficit reduction in the first third of the fiscal year is reported to be about 20% lower than when Trump took office,credited to the management\u2019s deregulatory and tax-cut measures.<\/p>\n<p>&#8211; Rather than relying on the fed to lower rates, the piece argues Trump should focus on cost-of-living relief through supply-side policies, especially addressing housing.It highlights real wages and housing affordability as key levers, calling for the House-passed Housing for the 21st century Act to be enacted.<\/p>\n<p>&#8211; The article ultimately contends this habitat represents a soft landing or \u201cGoldilocks\u201d scenario, with the president needing to pivot attention from the Fed to addressing housing and other supply-side constraints.<\/p>\n<p>In short, it portrays Trump\u2019s approach as delivering steady growth and easing inflation without overheating, and it urges prioritizing housing and supply-side reforms over further monetary easing.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">A Goldilocks first year for Trump 2.0<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2504481\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>If you want to be a pessimist, the worst economic news for <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\">President Donald Trump<\/a> during his first full year back in the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/oval-office\/\">Oval Office<\/a> is that the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-reserve\/\">Federal Reserve<\/a> cannot possibly justify slashing the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-announces-a-closed-meeting-for-monday-to-discuss-discount-rate\/\" title=\"... Announces a Closed Meeting for Monday to Discuss Discount Rate\">interest rate charged<\/a> by banks to borrow from each other overnight.<\/p>\n<p>If you want to be an optimist, you just have to look at why the federal funds rate is so static. After all, the Fed left it unchanged at the&nbsp;3.5%&ndash;3.75%&nbsp;target range in its January 2026 meeting. That was in line with expectations, after three consecutive rate cuts last year that pushed borrowing costs to their lowest level since 2022.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/premium\/4453520\/credit-card-companies-wrong-target-consumer-ire-trump-credit-interest-cap\/\">Credit card companies are easy to vilify, but the wrong target for consumer ire<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4461616\/netflix-warner-bros-merger-lawsuit\/\">Netflix faces consumer lawsuit as Warner Bros. merger scrutiny mounts<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4459906\/warner-bros-reopens-negotiations-paramount-best-final-offer\/\">Warner Bros. reopens negotiations with Paramount seeking &#8216;best and final offer&#8217;<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>Despite perpetual panic over a supposedly deteriorating labor market, a second shoe has yet to drop, with the unemployment rate humming near historic lows at 4.3%. And although net job growth across 2025 was mild &mdash; the Committee for a Responsible Federal Budget found the economy added a net 359,000 jobs &mdash; that stems from the White House&rsquo;s intentional crusade to slash 324,000 jobs from the federal government. The Department of Government Efficiency&rsquo;s moves in early and mid-2025, haphazard and arbitrary at times, brought federal employment to its lowest level in 60 years.<\/p>\n<p>And although those DOGE reforms failed to target the entitlements that drive federal spending, the budget deficit for the first third of the current fiscal year is down 20% from when Trump took office. That&rsquo;s in large part due to Trump&rsquo;s deregulatory executive agenda and the supply-side reforms of his signature domestic achievement, the tax-cutting One Big Beautiful Bill Act.<\/p>\n<p>Such deficit reduction is arguably the silent yet primary factor driving inflation&rsquo;s overdue decline. While inflation remains above its 2% maximum target, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fact-check-did-joe-biden-propose-a-2-trillion-bill-to-study-the-cause-of-rising-inflation-rates\/\" title=\"FACT CHECK: Did Joe Biden Propose A  Trillion Bill To Study The Cause Of Rising Inflation Rates?\">consumer price index inflation<\/a>, which was at 3% by the end of Joe Biden&rsquo;s presidency, fell to 2.4% in January. And core CPI, which was at 3.3%, has fallen to 2.5%. Core CPI, the preferred inflation measure of the Fed because it excludes the volatile categories of food and energy, is now at its lowest point since Biden lit the economy on fire by signing his cynically named &ldquo;American Rescue Plan&rdquo; into law.<\/p>\n<p>The labor market isn&rsquo;t anywhere near recession territory, nor is it far too hot as it was during the most inflationary period of Bidenomics. And inflation is finally coming down in steady, sure steps, without a corresponding cooling of economic growth. In fact, the reverse is true. Economic growth is running north of 4% while productivity growth is closer to 5%, the secret sauce necessary to sustain economic expansion amid an aging, shrinking labor force.<\/p>\n<p>In other words, this is a Goldilocks economy. And a Goldilocks economy means that the Fed simply has no good reason to slash the federal funds rate. Statutorily, the Fed&rsquo;s job is to balance maximizing employment with maintaining price stability. A 4.3% unemployment rate is historically within a stone&rsquo;s throw of the undeniable point of full employment, and if anything, inflation remains slightly to the upside of price stability.<\/p>\n<p>Even if Trump&rsquo;s preoccupation with the Fed is futile, his reasoning is rational. Cost of living remains the top concern of voters, and Trump incorrectly believes that if the Fed slashes the federal funds rate, the rates of consumer borrowing and mortgages, as well as on the treasuries that finance our $38 trillion debt, will also fall. In fact, as we&rsquo;ve discussed here at Tiana&rsquo;s Take, the reverse has been true recently.<\/p>\n<p>But that doesn&rsquo;t mean that Trump should abandon his affordability initiative; rather, he should refocus it on the supply side. Already, <a href=\"https:\/\/amzn.to\/3YuVZYV\" >real average weekly wages<\/a> are up 1.9% throughout his first year back in office. After the 4% decline in real paychecks throughout Biden&rsquo;s presidency, that&rsquo;s about the single most important and tangible form of relief that any successor could give a price-painful public. As inflation continues to come down and economic growth accelerates, real earnings growth should compound over time.<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/4453227\/payroll-jobs-number-revised-down-2025\/\">PAYROLL JOBS NUMBERS REVISED DOWN BY OVER A MILLION FOR 2025<\/a><\/strong><\/p>\n<p>Secondarily, Trump should focus on the literal supply side of the single issue driving consumer concerns over affordability: housing. While the partisan chasm in the housing shortage shows that Democratic zoning and environmental restrictions are disproportionately worsening housing prices to crisis levels, that doesn&rsquo;t mean the federal government is toothless in the face of a predominantly local issue. The easiest and lowest-hanging fruit for Trump would be to force the Senate to take up the House-passed Housing for the 21st Century Act and sign it into law.<\/p>\n<p>Trump inherited the worst inflationary crisis in half a century, but a year back on the job, he&rsquo;s steered the ship into pulling off our first, undeniable soft landing since World War II. The Goldilocks economy is not too hot for panic from investors, but not too cold for panic from the Fed. The president should let go of his inordinate focus on the Fed and learn to love an economic landing that&rsquo;s just right.<\/p>\n<p><em>Tiana Lowe Doescher (<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/x.com\/TianaTheFirst\">@TianaTheFirst<\/a>) is an economics columnist for the&nbsp;<\/em>Washington Examiner<em>.<\/em><\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trump 2.0 in Goldilocks era: Fed holds rates steady now<\/p>\n","protected":false},"author":2693,"featured_media":2571730,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/Biz.Tiana_.022526.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651,538],"tags":[23219,74180,3634],"class_list":["post-2571729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","category-washington-examiner","tag-first-year","tag-goldilocks","tag-trump"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/Biz.Tiana_.022526.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2571729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2693"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2571729"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2571729\/revisions"}],"predecessor-version":[{"id":2571733,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2571729\/revisions\/2571733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2571730"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2571729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2571729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2571729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}