Trump Claims Economic Boom Amid Rising Consumer Prices

Jan 14, 2026, 2:30 AM

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President Donald Trump declared on Tuesday that "the Trump economic boom has officially begun," shortly after the Labor Department reported a continued rise in consumer prices during his presidency. Speaking to members of the Detroit Economic Club, Trump highlighted his administration's tax cuts, tariffs, and trade deals, but did not provide specific details on new policies aimed at controlling prices.

In his remarks, Trump promised to unveil additional plans to enhance affordability in the coming weeks, dismissing concerns about rising costs as a "fake word" used by Democrats to shift blame onto him. Recently, he directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to lower rates and proposed legislation to cap credit card interest rates at 10%, significantly lower than current rates.

Despite Trump's assertions of economic growth, polls indicate that many Americans are dissatisfied with the economy. A recent survey in Michigan revealed that nearly two-thirds of likely voters have noticed rising costs, with 48% believing the economy has weakened under Trump, while only 38% felt it has improved.

At the national level, the Labor Department reported a 2.7% increase in consumer prices from December 2024 to December 2025, prompting Trump to criticize Federal Reserve Chair Jerome Powell for not cutting interest rates more aggressively. Trump claimed, "Growth is exploding, productivity is soaring, investment is booming, incomes are rising. Inflation is defeated," despite the ongoing concerns about affordability among the public.

Political analysts suggest that economic issues will be pivotal in the upcoming midterm elections, with Republicans striving to maintain their majorities in Congress. The contrast between Trump's optimistic economic narrative and the public's anxiety about rising prices may complicate the Republican strategy as they head into the elections.

In his speech, Trump also previewed his upcoming address at the World Economic Forum in Switzerland, where he plans to discuss housing policies aimed at making homeownership more accessible. However, the effectiveness of his proposed measures remains uncertain, especially as many Americans continue to feel the pinch of rising living costs.

As the administration grapples with these economic challenges, the disconnect between Trump's proclamations and the realities faced by everyday Americans raises questions about the sustainability of his economic policies and their impact on the electorate.

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