Trump has been touting near the same interest rates and consumer prices that he inherited from Biden, and now Trump has engineered the economy's eventual slow decline into higher living costs, hurting all but the well-off. The stuff has not hit the fan yet. Many of Trump's policies will come to a head over the next six months, leaving a sustained bad taste in the mouths of voters in time for the 2026 midterms, when all congressional members are up for re-election or the filling of open seats.. That is just for starters, because the Medicaid cuts, which were once intended to enable individuals to access affordable healthcare, will not take effect until after the November 2026 Congressional elections, when the full impact of those cuts will be felt by the voters themselves.
The announcement of the "trade/tariff" deal with the EU and major Asian trading partners, which included the largest tariff increases since the Great Depression, also hit consumers' pockets. As imported inventory is sold off, the new tariffs become additional costs that are passed on to retail customers. Businesses that cannot adjust or compete by raising costs and prices to customers will likely go out of business. It is a short-term victory for Trump, but it was a bitter pill for consumers that will be felt over the next six months. Still out there, even higher than the EU tariffs of 15%, are the "deals" that have not been finalized with Canada and Mexico. That stuff has not yet hit the fan, either. The tiff with the Federal Reserve, Trump's pressure to lower interest rates, ignores the reason given by the Fed for holding off on lowering interest rates: it is due to the fear that these tariffs will lead to higher consumer prices and inflation. What the tariffs would actually be is now only partially resolved.
Those crowing that today the Trump policies of the Big Beautiful Bill and the dramatic increase in health care costs to those who are living on the economic margins and the disaster facing access to rural health have not hit the fan either. The impact of the mass deportations on farm, domestic, construction, and hospitality workers, jobs not sought by already employed Americans, has also not hit the fan.
We in Grand County, Colorado, will know who to blame. 28 to 38 percent hike in health insurance premiums and costs. That one will be felt before the November 2026 midterms when you can thank your Congressperson who voted for this....
For the record, inflation is creeping up, with the threat of higher tariffs looming, rising last month from 2.4 percent to 2.7 percent. In December 2024, Biden's last month in office, the unemployment rate was 2.9 percent...and we are not far from that. Gas at the pump prices are now near what Biden left them in January (per AAA.). Update 7/30/2025: As Biden left office, the economy grew by 2.4% in the last quarter of 2024. The growth rate released today under the Trump regime rose to 3%, as the Fed meets to discuss whether to lower interest rates. As recently stated by the Fed chair, this is a heated economy, and the impact of the high tariffs on consumers is still a threat to inflation. They will be considering this as they meet today. Google AI:and Gross Domestic Product, 4th Quarter and Year 2024 (Third Estimate), GDP by Industry, and Corporate Profits | U.S. Bureau of Economic Analysis (BEA)
Conflict between presidents and the federal reserve has a history. Politicians like to lower rates,, whether they are in a democracy or in a dictatorship. It is good politics...but it could be a disaster to ignore economics
MUFTIC FORUM BLOG: Trump's latest attack on the Federal Reserve has a history
.reuters.com/business/fed-keeps-rates-steady-despite-trumps-pressure-with-two-governors-dissenting-2025-07-30/#:~:text=Summary,for%20the%20fifth%20consecutive%20meetingt:
The price of crude oil, the basis for gas prices, is controlled by Middle East oil cartels, not the president of the US. The announced trade deal with the EU included "investments" in US energy, and the details and impact on the price of crude to consumers are unknown. However, it is beneficial for US oil and gas producers who have been seeking markets for the glut of oil and gas in the ground they are currently experiencing.
The Consumer Price Index rose 2.7 percent for the 12 months ending June 2025 : The Economics Daily: U.S. Bureau of Labor Statistics "The Consumer Price Index for All Urban Consumers (CPI-U) rose 2.7 percent for the 12 months ending June 2025, after rising 2.4 percent over the 12 months ending May. Prices for all items less food and energy rose 2.9 percent over the past 12 months, while shelter prices increased 3.8 percent over the last year. "
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