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President Donald Trump declared Tuesday that “the Trump economic boom has officially begun,” even as new government data showed consumer prices continuing to rise during the first year of his presidency and polls indicated many Americans remain worried about affordability.
Speaking to members of the Detroit Economic Club gathered in a casino ballroom, Trump praised his tax cuts, tariffs and trade deals, while promising — without specifics — that additional plans to bring down costs would be unveiled soon.
“In the coming weeks, I will be laying out even more plans to help bring back affordability,” Trump said, dismissing the term itself as a “fake word” invented by Democrats to blame him for high prices.
Trump’s remarks came just hours after the Labor Department reported that consumer prices rose 2.7% from December 2024 to December 2025, underscoring the challenge inflation continues to pose for the administration.
In Michigan, a politically competitive state with a marquee Senate race and several closely watched House contests, economic anxiety remains pronounced. Nearly two-thirds of likely voters said they have noticed rising costs over the past year, according to a new poll commissioned by The Detroit News and NBC affiliate WDIV and released to coincide with Trump’s visit. The survey found that 48% of respondents said the economy has weakened under Trump, compared with 38% who said it has improved.
Nationally, political strategists from both parties say economic concerns are likely to dominate the upcoming midterm elections as Republicans work to protect their House and Senate majorities.
In recent days, Trump has floated or directed a series of measures aimed at easing costs, including ordering mortgage giants Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to help lower interest rates. He has also proposed barring large investment firms from buying single-family homes and capping credit card interest rates at 10%.
Trump mentioned those initiatives only briefly in his speech. Both the credit card rate cap and restrictions on investor-owned housing would require congressional approval.
Trump said he plans to provide more detail on housing policy next week when he addresses the World Economic Forum in Davos, Switzerland.
“At Davos next week, I’m going to provide much more detail about our housing policies,” he said, “so that every American who wants to own a home will be able to afford one.”
Trump used the latest inflation data to renew pressure on the Federal Reserve, urging Chair Jerome Powell to cut interest rates more aggressively. In a social media post Monday, Trump said the figures showed Powell should reduce rates “meaningfully.”
“The Federal Reserve cut interest rates repeatedly last year, but not by as much or as quickly as Trump would have liked,” economists note.
On Sunday night, Powell accused the Trump administration of attempting to intimidate him through an investigation tied to renovations at the Fed’s headquarters — comments that drew criticism of the administration from Democrats and Republicans on Capitol Hill.
Trump again targeted Powell during his Detroit remarks, criticizing him for not lowering rates further and saying, “That jerk will be gone soon.” Powell’s term as Fed chair expires in May.
Despite Trump’s confident tone, polls consistently show voters remain skeptical. Many Americans tell pollsters they are dissatisfied with the economy and fear tougher times ahead, a disconnect that analysts say may explain the administration’s renewed push for price-focused policies.
Trump also used his speech to attack political opponents, including Reps. Ilhan Omar of Minnesota and Alexandria Ocasio-Cortez of New York, former President Joe Biden and Sen. Rand Paul of Kentucky. A day after he said he had spoken with Sen. Elizabeth Warren of Massachusetts about lowering credit card interest rates, Trump lashed out at Democrats broadly.
“They have horrible policy,” Trump said. “They’re smart. They’re evil. They’re vicious. But they’re bad at policy.”
Trump insisted that economic conditions are improving rapidly, telling the Detroit audience, “Growth is exploding, productivity is soaring, investment is booming, incomes are rising. Inflation is defeated.”
Economists caution that while some indicators show resilience, inflation remains above the Federal Reserve’s long-term target, and public perceptions often lag behind official data — particularly when prices for essentials such as housing, food and credit remain elevated.
Trump is expected to expand on his affordability and housing agenda at the World Economic Forum next week, potentially offering more detail on proposals that would require congressional action. Meanwhile, upcoming inflation reports and the Federal Reserve’s next rate decision are likely to shape both economic policy debates and the political landscape heading into the midterms.
