Trump proclaims an 'economic surge' while Americans remain concerned about rising costs

Trump Declares Start of Economic Surge Amid Rising Consumer Prices

DETROIT — Speaking to members of the Detroit Economic Club on Tuesday, President Donald Trump proclaimed that "the Trump economic boom has officially begun," despite new data from the Labor Department showing that consumer prices continued to rise during his first year in office.

Addressing a formal audience in a Detroit casino ballroom, Trump highlighted his administration's tax reforms, tariffs, and trade agreements. However, he offered few specifics on new policy initiatives designed to tackle inflation and make life more affordable for Americans.

"In the weeks ahead, I'll introduce additional measures to restore affordability," Trump stated, though he also dismissed the term "affordability" as a political talking point created by Democrats to blame him for high prices.

Recently, Trump directed Fannie Mae and Freddie Mac to purchase $200 billion in mortgage-backed securities in an effort to reduce interest rates. He also pledged to prevent large investment firms from acquiring single-family homes and called on credit card companies to cap interest rates at 10%—far below current averages. These proposals would require legislative approval.

Trump also previewed his upcoming appearance at the World Economic Forum in Switzerland, where he plans to share more details about his housing policies.

"Next week at Davos, I'll outline our housing initiatives to ensure every American who wants to buy a home can afford one," he said.

Despite Trump's repeated claims that the economy is stronger than ever, public opinion polls indicate that many Americans remain dissatisfied and anticipate tougher times ahead. Political analysts from both parties agree that economic issues will be central in the upcoming midterm elections, as Republicans seek to retain control of Congress.

This political pressure may explain the contrast between Trump's optimistic economic messaging and his search for solutions to rising prices.

Michigan Voters Express Concern Over Rising Costs

In Michigan, where key Senate and House races are expected to be competitive, a recent poll commissioned by the Detroit News and WDIV-TV found that nearly two-thirds of likely voters have noticed an increase in costs over the past year. The survey, released as Trump visited the state, revealed that 48% of respondents believe the economy has weakened under his leadership, while 38% think it has improved.

National Inflation and Trump’s Criticism of the Federal Reserve

On the national stage, the Labor Department reported on Monday that consumer prices climbed by 2.7% from December 2024 to December 2025. Trump seized on this data to criticize Federal Reserve Chair Jerome Powell, urging in a social media post that Powell should enact significant interest rate cuts, warning that failing to do so would reinforce his reputation for acting "too late."

During his Detroit speech, Trump asserted, "Growth is exploding, productivity is soaring, investment is booming, incomes are rising. Inflation is defeated."

Although the Federal Reserve lowered interest rates several times last year, Trump has expressed frustration that the cuts were neither deep nor swift enough. On Sunday, Powell publicly accused the Trump administration of attempting to intimidate him through an investigation into the Fed's office renovations, sparking bipartisan criticism in Congress from both Democrats and Republicans.

Trump continued to single out Powell in his remarks, as well as other political adversaries, including Representatives Ilhan Omar and Alexandria Ocasio-Cortez, former President Joe Biden, and Senator Rand Paul.

He again faulted Powell for not reducing interest rates to his preferred levels, adding, "That jerk will be gone soon," referencing Powell's term ending in May.

Progressive Policy Proposals and Political Rhetoric

Trump also criticized Democrats, just a day after speaking with Senator Elizabeth Warren about their mutual interest in lowering credit card interest rates—one of several progressive policy ideas he has recently supported.

"Their policies are terrible. Thank God they're terrible," Trump said of Democrats. "They're smart, they're ruthless, but their policies are bad."

This article was originally published by NBCNews.com