Trump Defends US Economy, Public Still Complaining
US President Donald Trump, in a live address Wednesday night from the White House, attempted to reassure the public that concerns about the US economy were overblown. He acknowledged challenges but emphasized that they were being addressed. Trump also said he inherited a "mess" and was now working to fix it.
The speech came at a sensitive time as Trump's popularity is said to be steadily eroding. Several polls show many Americans are disappointed with his administration's handling of the economy, particularly as inflation has risen again and hiring has weakened. Trump attempted to link price concerns to the policies of the previous administration.
Politically, the speech was also seen as an attempt to strengthen his position ahead of 2026, when midterm elections will determine control of the House of Representatives and the Senate. The White House is using this opportunity to promote a narrative that the economy is on an upward trajectory, especially after this year's election results raised questions about the strength of his coalition.
Trump even presented a graph to show the economy is on an upward trajectory. Indeed, some indicators appear positive: the stock market is strengthening, gasoline prices are falling, and technology companies are still investing heavily, particularly in the artificial intelligence (AI) sector. However, according to the report, the picture at the societal level is not that simple.
The biggest problems remain the cost of living and the job market. Previously declining inflation has risen again after Trump's tariff policies triggered price increases, with the CPI hovering around 3% annually (from 2.3% in April). At the same time, average job growth since April has been described as weak, and the unemployment rate has risen from 4% in January to 4.6%—leaving many feeling the economy is "stable," but not yet truly comfortable. (asd)
Source: Bloomberg.com
