President Donald Trump keeps boasting about a booming economy, but one of his own appointees just broke ranks. Federal Reserve Governor Stephen Miran, 42, warned this week that the labor market is softening and that the White House’s own policies are a major part of the problem, a sharp contrast to the president’s claims that America is “the strongest it’s ever been.”
Miran didn’t directly attack Trump, but his words cut deep. “Yes, the labor market continued to weaken in the first half of the year,” he said, adding that “part of that was due to uncertainty over policy.” He pointed to Trump’s so-called “biggest tax hike in history,” saying it caused businesses to hold back on investment until they understood what it meant for their bottom line.
The president has repeatedly bragged that his economic policies are driving growth, declaring last week that America has “the best economy we’ve ever had.” But for many Americans, the reality feels far different. Inflation remains stubborn, real wages have failed to keep pace, and grocery prices, despite Trump’s claim that they are “down,” have only climbed higher.
Stephen Miran:
“The labor market continued to weaken in the first half of this year.”
— Spencer Hakimian (@SpencerHakimian) October 15, 2025
Miran also blamed Trump’s unpredictable trade agenda for shaking business confidence. “We also had the biggest rearrangement to global trading policy in half a century,” he said. “While those deals were being negotiated and while people were waiting to see where tariff rates would shake out, it wouldn’t surprise me if people held off on making some decisions.”
That’s a polite way of saying Trump’s tariffs scared investors. The administration’s sweeping import duties were supposed to revive domestic manufacturing, but economists say they have largely acted as a hidden tax on American consumers, raising prices across the board. Even Miran, a conservative economist who typically supports Trump’s free-market rhetoric, hinted that the uncertainty surrounding the tariffs helped stall growth.
The timing couldn’t be worse for the White House. Trump has spent months touting his supposed victories over inflation, trade imbalances, and “woke” economic policies, while dismissing critics as out of touch. But new data shows growth slowing and the labor market losing steam, trends that even Trump’s own Fed appointee is now acknowledging.
Behind the scenes, economists warn that policy confusion is weighing heavily on the private sector. Businesses are wary of new tax structures and unsure whether Trump will double down on tariffs or suddenly pivot. That kind of instability, they say, discourages hiring, chills investment, and ultimately drags down the broader economy.
The president’s go-to talking point, a strong stock market, may not be enough to counter public frustration. Wall Street might be thriving, but Main Street is still feeling squeezed by higher prices and interest rates. Miran’s comments make clear that even inside Trump’s own economic team, the optimism is wearing thin.
For a president who prides himself on image control, it’s a rare moment of dissent from within. Trump can keep claiming victory over inflation and crowing about prosperity, but the warning from his own Federal Reserve pick tells a different story, one of an economy slowing under the weight of its own uncertainty.
