The President of the United States, Donald Trumpis heading to the Poconos for his first domestic trip as part of a campaign to address voters’ lingering dissatisfaction with inflation and the cost of living.
Tuesday’s trip to Mount Airy Casino Resort marks the first time in months that he has left Washington for a rally-style event.part of an attempt by the White House to carry out a “reset” after a series of policy defeats and growing signs that Americans are feeling the brunt of high costs and a slowing job market.
Although consumer confidence has improved slightly, it remains near the lowest levels on record, according to University of Michigan data, and people’s perceptions of their personal finances are the most negative since 2009. Unemployment rose and U.S. businesses cut staff in November, the largest reduction since the start of 2023, according to ADP Research data.
“President Trump will deliver a positive, economically focused speech about everything he and his team have done to deliver higher wages and lower prices for the American people,” White House Press Secretary Karoline Leavitt said in an interview with Fox News on Tuesday.
For Trump, who returned to the White House promising to lower the cost of living, the risk faces the same headwinds that hampered the administration of his predecessor, Joe Biden. In recent weeks, Trump has tried to allay those concerns by crafting new agricultural exemptions for his tariff policies, offering aid to farmers and investigating the meat processing industry. The president also sought to reduce fuel efficiency standards to reduce the price of automobiles and the cost of prescription drugs.
He also promoted a tax refund program, even as other members of the administration admitted that any tax refund would require congressional approval and a 50-year mortgage that could reduce borrowers’ monthly payments.
However, Republicans will face tough questions this month over rising health care costs for the millions of Americans who receive subsidies under the Affordable Care Act, which expires at the end of the year. The president also continues to threaten additional tariffs, indicating he may increase taxes on products from Canada, Mexico and India – three of the United States’ largest trading partners – on Monday alone.
Trump’s cost-cutting efforts have also struggled to stand out amid a flurry of activity in Washington, ranging from sweeping changes in immigration policy and efforts to mediate international conflicts to personal projects — such as building a new ballroom at the White House and renovating the Kennedy Center — that have received considerable presidential attention.
Trump expressed irritation when asked about cost of living issues at the White House, accusing Democrats and the media of promoting a “hoax” since inflation has risen at a higher rate under Biden.
“We inherited a cost of living problem,” Trump said Monday at an event announcing a $12 billion economic aid package for farmers. “You can call it the cost of living or whatever you want, but Democrats caused the problem, and we’re the ones who solve it.” »
Advisors insist the president’s economic policies have helped mitigate the effects of high prices for essential goods. White House spokesman Kush Desai said lowering the cost of living has been a “priority since day one” for Trump.
“Every official in the Trump administration has done their part over the past year to achieve this priority, from rolling back costly regulations to negotiating historic drug pricing deals – efforts that have reduced inflation and raised real wages,” Desai said. “There is still much work to do, but President Trump highlights the significant progress his administration has made and will continue to make to reverse the economic disaster left behind by Joe Biden. »
Yet Tuesday’s visit to a crucial state implicitly indicates that voter sentiment about the economy remains a sore point for the government.
“There are many indicators that American families are feeling the pressures associated with the Trump administration’s policies, in that their budgets are being significantly strained,” said Kimberly Clausing, a former Biden Treasury Department official and senior fellow at the Peterson Institute for International Economics.
A Harris poll conducted for Bloomberg News in October showed that 55% of employed Americans fear losing their jobs, and nearly half say it would take them four months or more to find a new job of similar quality if they lost their current job. In the same survey, 62% of respondents said the cost of everyday items had increased in the past month.
The president said he should not be blamed for a problem that worsened under his predecessor. However, some economists say his tariffs have contributed to higher prices and costs for American businesses – although not as much as many feared.
Consumer spending stagnated in September and retail sales lost strength, according to the latest official data, although Black Friday sales in late November suggest some resilience.
The Federal Reserve’s Beige Book survey, based on regional business contacts, indicated that consumer spending declined further through mid-November, except among higher-income shoppers.
Economists highlight unequal forces within the economy. Higher-income households saw their spending increase 2.7% year-over-year in October, while lower-income groups saw just a 0.7% increase, according to credit and debit card data from the Bank of America Institute.
Clausing cited tariffs that are driving up product prices, rising labor costs due to Trump’s immigration policies and expected increases in health insurance premiums when Affordable Care Act subsidies expire for millions of Americans at the end of the year.
“It’s a mixed picture,” she said. “We are not in a recession, we are not seeing stock market crashes, but it is certain that a lot of people are under pressure. »
Advisers say Tuesday’s event will likely be the first of many to highlight the president’s economic policies. White House chief of staff Susie Wiles said in an interview with the Daily Caller on Monday that she intends to turn the midterm elections into a referendum on Trump.
“I haven’t told him this yet, but he’s going to campaign like it’s 2024 again,” Wiles said, adding that he hopes Trump “works hard.”
Administration officials, including White House National Economic Council Director Kevin Hassett, asked voters to be patient, saying they would soon see the benefits of slowing inflation, lower gasoline prices, further tax cuts and lower mortgage rates. It’s a familiar refrain coming from the Biden administration, when his aides insisted that voters would understand positive trends in the economy even with warning signs.
Hassett told CNBC on Monday that Trump would announce “a huge amount of positive news” on the economy this week and suggested that more Americans could benefit from larger tax refunds early next year.
“That kind of action will make people look at their wallets and say, ‘Wow, this guy really favors me,'” Hassett said. “And at the end of the day, it’s more important than any research.”
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