Trump Declares Economic Boom Amid Rising Consumer Prices

Jan 15, 2026, 2:50 AM

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President Donald Trump recently announced that "the Trump economic boom has officially begun," coinciding with a report from the Labor Department indicating that consumer prices have continued to rise during his presidency. In a speech to the Detroit Economic Club, Trump highlighted his administration's tax cuts, tariffs, and trade deals but did not provide specific details on new measures aimed at controlling prices.

Trump stated that he would 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. He has directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to lower rates and has proposed capping credit card interest rates at 10%, significantly lower than current rates. However, these proposals would require legislative action to be implemented.

Despite Trump's assertions of a booming economy, public sentiment appears to be at odds with his claims. A recent poll conducted in Michigan revealed that nearly two-thirds of likely voters have noticed rising costs over the past year, with 48% believing the economy has weakened under Trump, compared to 38% who feel it has improved. This disconnect between Trump's optimistic rhetoric and the public's economic anxiety is expected to play a significant role in the upcoming midterm elections, as both parties focus on economic issues.

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 that "growth is exploding" and that "inflation is defeated," despite evidence suggesting otherwise.

The Federal Reserve has already cut interest rates multiple times in the past year, but not to the extent that Trump desires. Tensions between the Trump administration and the Federal Reserve have escalated, with Powell accusing Trump of attempting to intimidate him over an investigation related to the agency's office renovations. Trump has also targeted various political figures, including Democrats and some Republicans, in his remarks, further highlighting the contentious political climate surrounding economic discussions.

As Trump prepares to address the World Economic Forum in Davos, he is expected to provide more details on his housing policies, aiming to ensure that homeownership remains accessible for all Americans. However, the ongoing rise in consumer prices and the public's dissatisfaction with the economy may overshadow his efforts to promote an image of economic success.

In summary, while President Trump confidently declares the onset of an economic boom, the reality of rising consumer prices and public concern presents a complex challenge for his administration as it approaches the midterm elections.

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