More than six months into his return to the Oval Office, President Donald Trump\u2019s promised economic \u201cgolden age\u201d is facing mounting skepticism as key indicators point to a slowing U.S. economy, rising inflation, and dwindling job creation raising concerns over the long-term impact of his aggressive policy shifts.<\/p>\n
After reshaping America\u2019s trade, tax, energy, and manufacturing frameworks through sweeping executive orders, a landmark spending bill, and a wave of tariff hikes, Trump is now grappling with what critics describe as a stalling recovery. While the White House paints a picture of imminent resurgence, a string of discouraging economic reports released this week suggests a more sobering reality.<\/p>\n
Friday\u2019s jobs report revealed a stark decline in hiring momentum. The U.S. economy added just 73,000 jobs in July, continuing a downward trend from 14,000 in June and 19,000 in May a total of 258,000 fewer jobs than initially estimated. Particularly alarming is the loss of 37,000 manufacturing jobs since Trump\u2019s tariffs took effect in April, undermining his claims of a factory sector revival.<\/p>\n
Simultaneously, GDP growth for the first half of 2025 slowed to 1.3%, down from 2.8% last year. Inflation, as measured by the Personal Consumption Expenditures Price Index, rose to 2.6% year-on-year, driven by spikes in the cost of imported goods such as appliances, furniture, and children\u2019s toys.<\/p>\n
\u201cThis just looks like a \u2018meh\u2019 economy continuing,\u201d said Guy Berger, senior fellow at the Burning Glass Institute, adding that job creation and growth remain stagnant even as the unemployment rate stays low.<\/p>\n
Despite the grim statistics, Trump fired the head of the federal agency responsible for the monthly jobs report, accusing it of political manipulation. \u201cImportant numbers like this must be fair and accurate,\u201d Trump wrote on Truth Social, asserting without evidence that the economy is \u201cBOOMING.\u201d<\/p>\n
Trump has also renewed his public attacks on Federal Reserve Chair Jerome Powell, urging interest rate cuts to stimulate borrowing and investment a risky move that economists warn could fuel further inflation.<\/p>\n
While Trump backs rate-slashing Fed governors Christopher Waller and Michelle Bowman, both officials cited a cooling job market as justification, not political loyalty.<\/p>\n
Trump\u2019s tariffs, heralded as a move toward \u201cfair trade,\u201d are now widely seen as contributing to rising consumer prices. Though the White House secured limited trade concessions from the EU, Japan, South Korea, and others, analysts warn that the broader tariff strategy could backfire, especially with midterm elections approaching.<\/p>\n
\u201cThe full inflationary impact of the tariffs won\u2019t be felt until 2026,\u201d noted Alex Conant, Republican strategist at Firehouse Strategies. \u201cUnfortunately for Republicans, that\u2019s also an election year.\u201d<\/p>\n
The president\u2019s revised tax-and-spending law also faces scrutiny. While Trump promises that deregulation and tax cuts will unleash growth, public approval remains tepid. A July poll by the AP-NORC Center shows that only 38% of Americans approve of Trump\u2019s economic leadership down from 50% at the end of his previous term.<\/p>\n
Still, White House spokesperson Kush Desai insisted that the best is yet to come: \u201cPresident Trump is implementing the very same policy mix at an even bigger scale and these policies will deliver results.\u201d<\/p>\n
Former President Joe Biden, in a December 2024 speech at the Brookings Institution, had warned against exactly this outcome.<\/p>\n
\u201cHe seems determined to impose steep, universal tariffs on all imported goods\u2026 on the mistaken belief that foreign countries will bear the cost,\u201d Biden said. \u201cI believe this approach is a major mistake.\u201d<\/p>\n
Now, with consumer prices rising and economic momentum flagging, those warnings appear prescient.<\/p>","protected":false},"excerpt":{"rendered":"
More than six months into his return to the Oval Office, President Donald Trump\u2019s promised economic \u201cgolden age\u201d is facing mounting skepticism as key indicators point to a slowing U.S. economy, rising inflation, and dwindling job creation raising concerns over the long-term impact of his aggressive policy shifts. After reshaping America\u2019s trade, tax, energy, and<\/p>","protected":false},"author":1,"featured_media":13542,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_1160854738579181570_1160854738579181570":"","facebook_3558452337540614_100649324928663":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[16,239],"tags":[285,970,971,975,973,974,976,977,266,972,773,737,978,835],"class_list":{"0":"post-13541","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"category-usa-canada","9":"tag-amnewsworld","10":"tag-donald-trump","11":"tag-inflation","12":"tag-jerome-powell","13":"tag-jobs-report","14":"tag-joe-biden","15":"tag-manufacturing","16":"tag-midterm-elections","17":"tag-reporters","18":"tag-tariffs","19":"tag-trade-war","20":"tag-us-economy","21":"tag-washington-d-c","22":"tag-white-house"},"yoast_head":"\n