Trump claimed the US economy is booming and inflation has disappeared. Economic data shows a more complicated picture.
Inflation peaked at 9.1% in June 2022, fell to 2.3% by April 2025, but has since climbed back to 4.2% in May after the Iran war disrupted oil supplies. Gas prices have become the top financial pain point for Americans, according to a Harris poll for the Guardian, with 83% saying they are making a dent in household finances. The average US gas price reached $4.32 per gallon in mid-October, nearly $1.30 higher than a year earlier.
Job growth has slowed significantly. The US added 181,000 jobs in 2025, compared with 2.2 million in 2024. The unemployment rate remains low at just over 4%, but economists describe this as a "low-hire, low-fire" economy where employers are neither hiring nor firing workers aggressively.
The stock market has surged since Trump took office, largely driven by AI investment, according to economists. However, the top 1% of Americans own nearly half of all stock market investments. The Guardian poll found that nearly two-thirds of respondents believe the country is experiencing a recession, and a third said one surprise bill could sink them financially.
Interest rates remain elevated at 4.25% to 4.5%, making borrowing more expensive for businesses, car loans and mortgages.