President Donald Trump delivered a primetime address Wednesday night aimed at defending his administration’s economic record as new polling and economic indicators point to widespread anxiety, rising costs, and declining confidence in his stewardship. The speech came amid reports that prices continue to rise, unemployment has jumped to a level not seen since the COVID-19 pandemic, and job growth has slowed to a halt.
During the address, Trump claimed he is bringing “high prices down and bringing them down very fast,” a statement at odds with the economic conditions described in the reporting surrounding the speech. He also asserted that grocery prices, which are up this year, are “falling rapidly,” a claim likely to resonate poorly with Americans who are skipping meals, reducing medical care, and drawing down savings to cover basic expenses.
Trump further declared that his administration has reduced prescription drug prices by up to 600 percent, even as many Americans continue to skip doses or cut pills in half to save money. Turning to health insurance, the president blamed Democrats for rising premiums, condemning the “steep increase in [health insurance] premiums being demanded by the Democrats.” The reporting characterizes that claim as false, noting that premium hikes are tied to Republicans’ refusal to extend enhanced Affordable Care Act tax credits.
In support of Trump’s claims, the White House reportedly distributed graphics to major television networks intended to show falling prices. Most networks declined to air the materials, citing unclear sourcing for the data. Fox News was the notable exception.
Democratic lawmakers responded with sharp criticism. Rep. Pramila Jayapal of Washington said, “No matter how he tries to spin it, everything is getting more expensive and the American people are hurting. Our government should be working to lower costs, not pointing fingers and making excuses.” Rep. Mark Pocan of Wisconsin reacted on social media by writing, “25th Amendment, folks,” followed by, “This is pathetic.”
The address came as Trump’s economic approval rating reached new lows. Polling released Thursday by AP NORC found that 70 percent of American adults described the nation’s economy as “poor.” While Democrats were most likely to hold that view, with 80 percent responding negatively, 40 percent of Republicans also described the economy as poor. Nearly 1,150 adults were surveyed between December 4 and this Monday. Additional polling trends point in the same direction. Audacy reported Gallup results showing a six point drop in Trump’s economic approval rating and a 12 point decline in approval of his handling of the federal budget since October.
Trump attempted to reassure voters by promising future economic relief, including a proposed $1,776 “warrior dividend” for some military service members. The payments would be funded by tariff revenue, according to the administration, even as tariffs have been widely reported to raise prices for U.S. consumers. A Joint Economic Committee analysis released this week found that “in just 10 months, the average American family has already paid nearly $1,200 in tariff costs, with the costs climbing steadily since the beginning of President Trump’s second term.”
Tariff policy has also placed pressure on farmers. Earlier this week, Trump announced $12 billion in one time payments to agricultural producers harmed by the trade war tied to his tariff agenda. Farmers have expressed skepticism that the aid addresses the underlying problem. Audacy station WCCO News Talk in Minnesota quoted fourth generation farmer Charlie Radman, who said, “It’s a bridge. It’s not the ultimate solution we’re looking for.”
During his address, Trump also praised the large budget package he signed into law over the summer. The reporting describes the legislation as enacting the largest cuts to Medicaid and nutrition assistance in U.S. history while providing additional tax breaks to the wealthy. Trump told viewers, “Next year, you will also see the results of the largest tax cuts in American history that were really accomplished through our great Big, Beautiful Bill, perhaps the most sweeping legislation ever passed in Congress.”
Independent analysis has questioned who benefits most from the law. Bloomberg reported that “most taxpayers will likely see only a modest boost that will do little to assuage their pocketbook concerns,” while “wealthy taxpayers in high-tax states like California, New York, and New Jersey are the biggest winners.”
Beyond immediate household costs, Trump’s broader economic agenda has raised alarms about financial stability. Treasury Secretary Scott Bessent has advocated for rolling back post-2008 financial regulations. Sen. Elizabeth Warren of Massachusetts warned that the administration “wants to turn the clock back to 2008 and let Wall Street run wild.” Reflecting on the last financial crisis, she said, “We all know how that ended—with taxpayers bailing out Wall Street while millions lost their homes and got fired from their jobs. Donald Trump could be setting the stage for the next crash.”
Bessent defended deregulation during a Fox Business Network interview, saying, “I chair something called FSOC, the Financial Stability Oversight Council, and these 2008, 2009, 2010 financial rules were too tight. They have hamstrung the American financial system. It was time for a change. We’re gonna be safe, smart, and sound in terms of our deregulation. But we have to take the financial system out of this straitjacket.”
That position has drawn criticism from legal and economic experts. University of Michigan business law professor Jeremy Kress responded, “Fact check: The decade following the Dodd-Frank Act marked the longest period of economic growth in U.S. history. The main problem with the post-2008 reforms is that they did not do nearly enough to limit the nonbank risk-taking that Bessent and his allies have enabled.” Progressive commentator Kyle Kulinski said, “These people are hell-bent on creating a new Great Depression,” while economist Dean Baker added, “Remember BLEAT: Bessent Lies about Everything All the Time.”
Concerns intensified after Bessent announced changes to the structure of the Financial Stability Oversight Council, created under Dodd-Frank. In an introduction letter to the council’s annual report, he wrote that the shift would move away from “prophylactic” regulation toward removing red tape to spur growth. Politico reported that market groups and members of Congress raised objections. Warren wrote that FSOC has met fewer times this year than at any point in its existence and is “sabotaging its own authorities.” Dennis Kelleher, head of Better Markets, said that “undermining the FSOC is undermining the economy and the financial system.” Kress later wrote that “this is a dereliction of duty by the Financial Stability Oversight Council. But if there is a silver lining, it is that the Trump administration now unequivocally owns whatever crisis lies ahead.”
Economic pressure continues to show up in official data. Bureau of Labor Statistics figures cited in the reporting showed prices rose 0.3 percent in September and 3 percent over the previous 12 months. Unemployment rates increased in eight states during the same month. Housing affordability has also worsened, with a Bankrate analysis of Realtor.com data finding that 75 percent of homes on the market are unaffordable for a typical household.
The Federal Reserve has acknowledged the strain. After lowering interest rates again this week, the Federal Open Market Committee said, “The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated.” It also noted that “downside risks to employment rose in recent months.”
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