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Economic Pain 'Just Beginning' as Key Index Shows More Inflation From Trump's Iran War
"The only thing Trump has made great again is inflation," said Rep. Brendan Boyle.
May 13, 2026
Data released by the US Bureau of Labor Statistics on Wednesday showed continued upward pressure on prices, caused in large part by President Donald Trump's war with Iran.
The Producer Price Index (PPI), which measures wholesale prices paid by businesses, posted a year-over-year gain of 6% in April, the largest yearly increase since December 2022.
Energy prices, which have surged since Trump launched an unprovoked war with Iran in late February, played a large role in raising wholesale costs, as the report finds "more than three-quarters of the broad-based increase in April can be traced to a 7.8% jump in prices for final demand energy."
However, energy prices aren't solely responsible for rising wholesale prices, as the so-called "core" PPI, which excludes the costs of food and energy, posted a yearly increase of 4.4% in April, the largest since February 2023.
PPI is seen as an important gauge of future inflation for consumers, as companies typically pass the costs they pay for inputs onto consumers in the form of price increases.
As explained by Groundwork Collaborative in a social media post, the wholesale costs measured by PPI "are what companies pay before they jack up prices on the rest of us."
"What's in the pipeline now is headed straight for your grocery bill and gas tank," Groundwork Collaborative added. "The pain isn't over. It's just beginning."
CNN economics reporter Elisabeth Buchwald similarly predicted more hurt for US consumers in the coming months, arguing in a Wednesday article that a 6% increase in PPI shows "the pain will not be short-lived."
"Even if the United States were to reach a deal with Iran today, it would still take months for shipments of oil held up by the blockade of the crucial Strait of Hormuz to reach American soil," Buchwald explained. "And even then, it would likely be months—or potentially years—before Americans see gas prices return to levels before the war."
Wednesday's PPI report came one day after the Consumer Price Index showed that consumer prices in April rose by 3.8%, the largest yearly increase since May 2023.
Rep. Brendan Boyle (D-Pa.) reacted to the latest inflation data by ripping into the president's policy decisions, including the Iran war and the global trade war he started shortly after returning to office last year.
"The only thing Trump has made great again is inflation," Boyle, the ranking member of the House Budget Committee, wrote in a social media post. "His disastrous policies—from his tariff taxes to his war in Iran—are making life even more expensive. We shouldn't be surprised the guy who managed to bankrupt a casino isn't an economic mastermind."
Rep. Maxine Dexter (D-Ore.) linked the increased prices to Trump's desire to have Congress spend $1 billion of taxpayer money on his proposed White House ballroom.
"Oregonians need real relief from these high costs at the store and the pump," wrote Dexter. "We must stop the war in Iran and refuse to pay for presidential vanity projects. Oregon families want peace. They need a break, not a ballroom."
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‘Outrageous’: GOP Budget Includes $1 Billion in Taxpayer Funds for Trump Ballroom
"Using taxpayer dollars to toady to a wannabe-dictator is both pandering and pathetic," said one critic.
May 05, 2026
Even though President Donald Trump has long insisted that his proposed White House luxury ballroom would be funded by private donations, congressional Republicans unveiled legislation on Monday that would put US taxpayers on the hook for the project.
As reported by Punchbowl News, Sen. Chuck Grassley (R-Iowa) released a proposal for a budget reconciliation package that includes $30 billion more in funds for US Immigration and Customs Enforcement (ICE), $3.4 billion for Customs and Border Protection, and $2.5 billion for the Department of Homeland Security.
Tucked into the proposal is $1 billion for what is described as an "East Wing modernization project, including above-ground and below-ground security features."
Given that Trump is planning to build his ballroom on the area of the White House's East Wing that he demolished last year, this means that $1 billion in taxpayer money would be going to the president's vanity project.
Democratic officials immediately pounced on news that their Republican counterparts are planning to funnel $1 billion to the ballroom project, noting that the budget plan comes as Americans are struggling with the surging costs of energy and food.
"Zero dollars to lower costs," wrote Rep. Brendan Boyle (D-Pa.), ranking member of the House Budget Committee. "Zero dollars to protect your healthcare. A massive check for an out-of-control ICE, and $1 billion for Trump’s ballroom. This Republican budget bill is a disaster."
Rep. Sean Casten (D-Ill.) responded to the GOP ballroom plan by declaring, "Oh hell no."
"Spiking prices, SCOTUS attacking democracy, collapsing faith in the US government," Casten added, "and the GOP is prioritizing sending more money to murderous ICE agents and Trump's ballroom vanity project. This is offensive."
Rep. Yassamin Ansari (D-Ariz.) contrasted the GOP finding money to fund the ballroom with its unwillingness to extend enhanced subsidies for Americans who buy health insurance through exchanges established by the Affordable Care Act.
"Add the ballroom to the laundry list of things Trump said someone else would pay for," Ansari wrote. "Ultimately, of course, it’s always the American people footing the bill for his outrageous pet projects. A $1BN price tag while he rips away your healthcare. Sickening."
Sen. Brian Schatz (D-Hawaii) welcomed the chance to have his Republican colleagues go on the record in favor of funding the ballroom.
"Just flagging that now everyone gets an up or down vote on the ballroom!" he wrote.
Elected Democrats weren't the only ones to hammer the GOP for the proposal to fund Trump's ballroom.
Lisa Gilbert, co-president of Public Citizen, called the GOP plan a "corrupt absurdity" that would make taxpayers shell out $1 billion for the president's "grandiose, bombastic, vanity project."
"Using taxpayer dollars to toady to a wannabe-dictator is both pandering and pathetic," added Gilbert, who decried the plans for increased ICE funding as "abhorrent."
Kristen Crowell, executive director of Families Over Billionaires, denounced the ballroom funding plan as "a glaring symbol of misplaced priorities and grift," while also calling attention to other harmful aspects of the GOP's budget proposal.
"At a time when families are struggling to afford housing, child care, and other basic necessities," Crowell said, "the White House and Republicans in Congress are proposing to pour tens of billions of dollars into an already bloated and unaccountable deportation machine—while also carving out funding for the president’s own luxury projects."
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'The Current Tax Code Is Rigged,' Plus 6.2 Trillion Other Reasons to Tax America's Ultrarich
"My bill is about basic fairness and making the ultrawealthy pay their fair share," said Sen. Elizabeth Warren. "It's time for the government to stop listening to the richest of the rich and start working for working people."
Mar 26, 2026
Backed by dozens of lawmakers, advocacy organizations, and labor unions, a trio of congressional Democrats on Thursday reintroduced the Ultra-Millionaire Tax Act, which would generate an estimated $6.2 trillion in revenue over the next decade by imposing a wealth tax on US fortunes above $50 million.
As the lead sponsors, Sen. Elizabeth Warren (D-Mass.) and Reps. Pramila Jayapal (D-Wash.) and Brendan Boyle (D-Pa.), highlighted in a statement, that estimated revenue is "more than double the score of the bill when it was first introduced five years ago, and enough money to pay for investments like universal childcare, free community college, Medicare expansion, and more—without raising taxes on 99.85% of American households."
The reintroduction comes just months away from the midterm elections. Democrats are working to reclaim control of Congress from President Donald Trump's Republican Party, which last year used its slim majorities in both chambers to push through a budget package that gave more tax cuts to the rich while cutting social programs for working families.
"While multimillionaires and billionaires are getting richer and richer, families are getting squeezed by a rigged economy," said Warren. "My bill is about basic fairness and making the ultrawealthy pay their fair share. It's time for the government to stop listening to the richest of the rich and start working for working people."
Under the bill, the country's wealthiest 260,000 households would pay a 2% annual tax on fortunes valued at over $50 million and an additional 1% on the net worth of households and trusts above $1 billion. The legislation would also impose a 40% "exit tax" on ultrarich individuals who renounce their citizenship for evasion purposes and would give the Internal Revenue Service $100 million in new funding.
"As millions of families are struggling under the weight of inflation, tariffs, and rising gas prices, the richest billionaires continue to see their net worth grow. We live in the richest country in the world, but that wealth is incredibly concentrated in a tiny group of people. It's time to tax the rich and level the playing field to ensure that every American has a chance to succeed," said Jayapal.
"The Ultra-Millionaire Tax Act is a major step toward making sure the wealthy finally pay their fair share," she continued. "With this legislation, we can narrow the racial wealth gap and invest trillions of dollars in healthcare, schools, clean energy, housing, and more to improve lives in communities across America."
At the beginning of 2026, an Institute for Policy Studies analysis found that the total wealth of US billionaires surged to $8.1 trillion last year—and the country's top 15 billionaires saw their collective fortune grow from $2.4 trillion to $3.2 trillion, more than double the S&P 500's 16% increase in 2025.
In the months since, even a columnist at the Rupert Murdoch-owned Wall Street Journal acknowledged that "billionaires' low taxes are becoming a problem for the economy," and Peter Mallouk, the CEO of wealth management firm Creative Planning, suggested that US wealth inequality "is 100% completely unsustainable as a society."
Boyle declared Thursday that "a secretary shouldn't pay a higher tax rate than the CEO. The current tax code is rigged against working people and the middle class. Our proposal finally changes this and makes billionaires pay their fair share."
Today, I'm introducing my wealth tax — and more than 50 members of Congress are joining me. It’s time for the government to start working for American families, not just the ultra-rich.
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— Elizabeth Warren (@warren.senate.gov) March 26, 2026 at 1:54 PM
Unions backing the bill include the American Federation of Government Employees; American Federation of Teachers; American Federation of State, County, and Municipal Employees (AFSCME); Communications Workers of America; Service Employees International Union; and United Steelworkers.
"Anti-worker extremists in Congress and their billionaire backers are slashing safety net programs and rigging the tax code to make the ultrawealthy richer as working families are pushed closer to the brink," said AFSCME president Lee Saunders. "The working people who keep this country running shouldn't be the ones carrying a heavier tax burden than the richest 0.1%."
"It's past time billionaires paid their fair share, so we can invest in the public services that working people need—from childcare to healthcare to food support," he argued. "Congress must pass Sen. Warren and Rep. Jayapal's Ultra-Millionaire Tax Act now."
Other organizations behind the bill include Americans for Tax Fairness, Climate Hawks Vote, Groundwork Collaborative, Indivisible, MomsRising, Oxfam America, Patriotic Millionaires, People's Action Institute, Public Citizen, the Sunrise Movement, and more.
“The United States is capable of sustaining the rich, stable, and free economy and country the vast majority of Americans—regardless of political party—actually want. The only way to ensure we get there, though, is by building a tax system that puts a check on the extreme inequality that threatens our economy and our democracy," said Patriotic Millionaires chair Morris Pearl.
"Millionaires like me want less inequality because we and our families will be better off in a society with less economic disparity. And it's not because I'm good or altruistic. I am not any more altruistic than the next person, I'm just greedy for a different kind of country than some other rich people in America," he continued. "I'm willing to pay more in taxes if it means helping us become the kind of country I know we can be. The Patriotic Millionaires are proud to support the Ultra-Millionaire Tax Act, and we urge Congress to act quickly to make this law."
Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Calif.) introduced another bill to tax the rich—the Make Billionaires Pay Their Fair Share Act—earlier this month, but neither proposal is likely to advance in the GOP-controlled Congress.
However, as historian Lawrence Wittner highlighted in a Thursday opinion piece for Common Dreams, "campaigns for state tax-the-rich legislation are flourishing in California, Colorado, New York, Oregon, Rhode Island, Texas, and Virginia, and have already succeeded in getting such legislation adopted in Massachusetts and Washington."
"Most Americans support proposals to raise taxes on the rich," he noted, citing a January poll that found 80% of Americans saw wealth inequality as a problem, 80% said the rich had too much political power, and 78% said taxes on billionaires were too low. Wittner concluded that "it's time to tax the rich."
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'Dismal' Employment Report Shows Trump Economy Lost 92,000 Jobs in February
“Month after month, the data shows Donald Trump’s economy is failing American families.”
Mar 06, 2026
President Donald Trump's self-proclaimed "greatest" economy in history took another major blow on Friday as the US Bureau of Labor Statistics revealed that the American economy lost 92,000 jobs in February.
Heather Long, chief economist at Navy Federal Credit Union, described the report as "dismal," while noting that the US economy as a whole has actually lost jobs since Trump announced his "liberation day" global tariffs in April 2025.
"Total job gains since from May 2025 to February 2026 are now -19,000," she wrote. "Companies are not hiring in the face of all of these headwinds and uncertainty. And even healthcare is starting to slow down."
University of Michigan economist Justin Wolfers argued that "the economic story just changed dramatically" because of the jobs report, which also showed downward revisions to the estimated jobs created in December and January.
"Recession questions are back on the menu," he said.
Mike Konczal, senior director of policy and research at the Economic Security Project, zeroed in on the surprise loss of healthcare jobs in February as particularly concerning given that healthcare has been the lone industry to consistently add jobs in recent months.
"This is the first month in years where healthcare jobs went negative, really changing the dynamic," he said. "Cuts to Medicaid, cuts to ACA... suddenly the thing that was 187% of private jobs since liberation day, holding it together, may be giving out?"
Rep. Brendan Boyle (D-Pa.), ranking member of the House Budget Committee, said that the terrible jobs report was a direct reflection of Trump's economic mismanagement.
"Month after month, the data shows Donald Trump’s economy is failing American families," Boyle said. "The job market is weakening, costs remain high, and Trump’s illegal tariff taxes continue to hurt businesses and workers. Trump and his allies in Congress know their agenda isn’t working. Instead of helping working families, they are pushing more tariff taxes and more tax breaks for billionaires. It is clear Republicans in Washington simply do not care about working families."
Alex Jacquez, chief of policy and advocacy at Groundwork Collaborative, declared that "the deterioration in the labor market is visible from space," and pinned the blame on "Trump’s reckless economic agenda."
"As the president piles on blanket tariffs and oil prices soar," Jacquez said, "today's report confirms he's sent the economy straight into a stagflation spiral."
University of Pennsylvania economist Heather Boushey said weakness in the US economy had been evident for several months, although Friday's jobs report showed the largest job losses of any month during Trump's second term.
"Today's data should not come as a shock as there have been signs of weakening in the US labor market for quite some time," she said. "The Trump administration’s focus on undermining the US economy rather than investing in America may be coming home to roost."
Daniel Hornung, policy fellow at the Stanford Institute for Economic Policy Research, said that the bad jobs report will make things even harder for the US Federal Reserve when it comes to making interest rate cut decisions.
"This morning’s report... comes at a difficult moment, with inflation still above target and an oil price shock threatening to raise inflation further," Hornung said. "The report complicates the Fed’s efforts to keep both unemployment and inflation low, and it makes it difficult for the [Trump] administration to argue heading into the midterms that their policies are leading to the kind of growth or improvement in living standards that they’ve long promised."
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'That’s Not Winning': Record Numbers of US Workers Are Raiding Their 401(k)s in Trump Economy
"Instead of helping, Trump made the largest healthcare cuts in American history and doubled down on his costly tariff taxes," said Rep. Brendon Boyle.
Mar 04, 2026
Even as President Donald Trump has declared that the US is in a "golden age" with the "greatest" economy on record, the Wall Street Journal reported on Wednesday that a record number of US workers are dipping into their retirement savings.
The Journal cited recent data from Vanguard Group showing that 6% of the 401(k) plans it administers took a hardship withdrawal in 2025, up from 4.8% that took such a withdrawal in 2024.
The top reasons for such withdrawals last year were avoiding eviction or paying off medical expenses, according to Vanguard.
The Journal noted that the Vanguard data about hardship withdrawals comes as "more Americans are falling behind on debt payments, including on some types of mortgages, putting them at risk of foreclosure," and "the average income of clients seeking help from credit-counseling agencies is rising."
Some Democrats quickly pounced on the Journal report, which they said undercut Trump's rosy assessment of the US economy.
"Record numbers of Americans are raiding their 401(k)s to avoid eviction or pay medical bills," wrote Rep. Mike Levin (D-Calif.). "That's not winning."
Rep. Brendan Boyle (D-Pa.) pointed to the Journal report and accused Trump and the GOP of exacerbating these problems with the cuts to Medicaid contained in the One Big Beautiful Bill Act that the party passed in 2025.
"A record number of Americans are dipping into their retirement savings just to stay afloat," wrote Boyle, the ranking member of the House Budget Committee. "A leading cause: Skyrocketing healthcare costs. Instead of helping, Trump made the largest healthcare cuts in American history and doubled down on his costly tariff taxes."
Senate Minority Leader Chuck Schumer (D-NY) responded to the report by saying, "This is not the golden age Donald Trump promised."
Andrew Bates, former senior deputy press secretary for President Joe Biden, also pointed to the GOP budget law as a key reasons for Americans' deteriorating financial security.
"The GOP in Washington makes the biggest healthcare and energy cuts in history, just to lower taxes for the rich," he wrote. "'Golden Age' for Jeffrey Epstein’s surviving friends, shittiness for everyone else."
Ann Larson, co-founder of Debt Collective, noted that while the data on 401(k) withdrawals is disturbing, it doesn't tell the whole story of the dire overall state of Americans' finances.
"This is bad, but add in the almost half of older Americans who have ZERO retirement savings to pull from," Larson wrote, "and the picture is even more horrifying."
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Critics Say Trump 'Joke Healthcare Plan' Nothing But a 'Con' of the American People
“In the longer term, we must finally pass Medicare for All, an actually great healthcare plan," said one campaigner.
Jan 15, 2026
US President Donald Trump on Thursday announced a "Great Healthcare Plan" that critics panned for being "short on details," arguing that—contrary to White House claims—the scheme will lead to higher consumer costs and less care.
Trump called on Congress to pass his proposal, which he said will "lower drug prices, lower insurance premiums, hold big insurance companies accountable, and maximize price transparency."
However, the advocacy group Protect Our Care called the proposal a "joke healthcare plan" and a "sad attempt to continue gaslighting the American people."
"Since taking office, President Trump and his cronies in Congress have taken a hammer to American healthcare to enrich billionaires and big corporations," the group said. "First, they slashed $1 trillion dollars from Medicaid, and then they doubled, tripled, and quadrupled health premiums for nearly 22 million Americans already struggling to get by in Trump’s unaffordable America."
"Now that it is clear that busting working families’ budgets is bad policy and bad politics, Trump is scrambling for a lifeline," Protect Our Care added. "The solution to ending the Trump-GOP premium disaster isn’t rocket science. It is the three-year, clean extension of the Affordable Care Act tax credits that the House passed. This commonsense solution that Trump callously threatened to veto is now sitting on Senate Republican Leader John Thune’s (SD) desk."
Trump’s new health care plan doesn’t help people facing skyrocketing ACA premiums.No fix for affordability. No solution for families struggling to stay covered.Just another empty framework while costs climb.
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— Protect Our Care (@protectourcare.org) January 15, 2026 at 12:57 PM
The Senate—which last month voted down a similar three-year-extension to what House lawmakers passed—has yet to schedule a vote on the extension. An attempt to advance the bill through a unanimous consent agreement was blocked by Republicans on Wednesday.
Congressman Brendan Boyle (D-Pa.), ranking member of the House Budget Committee, said in a statement Thursday that “Trump’s half-baked healthcare ‘plan’ is a con that does nothing to help Americans facing soaring costs and would raise healthcare expenses while cutting coverage."
"That’s no surprise from a president who is taking healthcare away from 15 million Americans to pay for tax breaks for billionaires," he added. "If the White House is serious about lowering healthcare costs right now, they should support legislation to extend the enhanced Affordable Care Act (ACA) tax credits that already passed the House with bipartisan support. The American people deserve real solutions, not gimmicks.”
The nonpartisan Congressional Budget Office estimates that a three-year extension of the enhanced ACA premium tax credits would increase the number of Americans with health insurance by millions, including approximately 3 million in 2027 and 4 million in 2028.
Eagan Kemp, healthcare policy advocate at the consumer watchdog group Public Citizen, said in a statement Thursday that “Trump’s Great Healthcare Plan is impressive only in the fact that it isn’t great, wouldn’t substantively improve healthcare, and isn’t even detailed enough to be considered a plan."
“Trump and his cronies have had more than a decade to come up with something beyond ‘concepts of a plan’ but have failed time and time again," Kemp continued. "The American people are suffering under a broken healthcare system that has been made worse by Trump and his MAGA allies."
“By passing tax cuts for billionaires and paying for them through healthcare cuts for tens of millions of people, Trump and Republicans showed their disdain for everyday Americans. In the short run, the Senate must follow the lead of the House and pass a clean three-year extension of the ACA subsidies," he said.
“In the longer term," Kemp added, "we must finally pass Medicare for All, an actually great healthcare plan, to finally guarantee everyone in the US can get the care they need throughout their lives without financial barriers."
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Fed Cut Interest Rates But Can't Undo 'Damage Created by Trump's Chaos Economy,' Expert Says
"Working families are heading into the holidays feeling stretched, stressed, and far from jolly."
Dec 10, 2025
A leading economist and key congressional Democrat on Wednesday pointed to the Federal Reserve's benchmark interest rate cut as just the latest evidence of the havoc that President Donald Trump is wreaking on the economy.
The US central bank has a dual mandate to promote price stability and maximum employment. The Federal Open Market Committee may raise the benchmark rate to reduce inflation, or cut it to spur economic growth, including hiring. However, the FOMC is currently contending with a cooling job market and soaring costs.
After the FOMC's two-day monthly meeting, the divided committee announced a quarter-point reduction to 3.5-3.75%. It's the third time the panel has cut the federal funds rate in recent months after a pause during the early part of Trump's second term.
"Today's decision shows that the Trump economy is in a sorry state and that the Federal Reserve is concerned about a weakening job market," House Budget Committee Ranking Member Brendan Boyle (D-Pa.) said in a statement. "On top of a flailing job market, the president's tariffs—his national sales tax—continue to fuel inflation."
"To make matters worse, extreme Republican policies, including Trump's Big Ugly Law, are driving healthcare costs sharply higher," he continued, pointing to the budget package that the president signed in July. "I will keep fighting to lower costs and for an economy that works for every American."
Alex Jacquez, a former Obama administration official who is now chief of policy and advocacy at the Groundwork Collaborative, similarly said that "Trump's reckless handling of the economy has backed the Fed into a corner—stuck between rising costs and a weakening job market, it has no choice but to try and offer what little relief they can to consumers via rate cuts."
"But the Fed cannot undo the damage created by Trump's chaos economy," Jacquez added, "and working families are heading into the holidays feeling stretched, stressed, and far from jolly."
Thanks to the historically long federal government shutdown, the FOMC didn't have typical data—the consumer price index or jobs report—to inform Wednesday's decision. Instead, its new statement and projections "relied on 'available indicators,' which Fed officials have said include their own internal surveys, community contacts, and private data," Reuters reported.
"The most recent official data on unemployment and inflation is for September, and showed the unemployment rate rising to 4.4% from 4.3%, while the Fed's preferred measure of inflation also increased slightly to 2.8% from 2.7%," the news agency noted. "The Fed has a 2% inflation target, but the pace of price increases has risen steadily from 2.3% in April, a fact at least partly attributable to the pass-through of rising import taxes to consumers and a driving force behind the central bank's policy divide."
The lack of government data has also shifted journalists' attention to other sources, including the revelation from global payroll processing firm ADP that the US lost 32,000 jobs in November, as well as Gallup's finding last week that Americans' confidence in the economy has fallen by seven points over the past month and is now at its lowest level in over a year.
The Associated Press highlighted that the rate cut is "good news" for US job-seekers:
"Overall, we've seen a slowing demand for workers with employers not hiring the way they did a couple of years ago," said Cory Stahle, senior economist at the Indeed Hiring Lab. "By lowering the interest rate, you make it a little more financially reasonable for employers to hire additional people. Especially in some areas—like startups, where companies lean pretty heavily on borrowed money—that's the hope here."
Stahle acknowledged that it could take time for the rate cuts to filter down to employers and then to workers, but he said the signal of the reduction is also important.
"Beyond the size of the cut, it tells employers and job-seekers something about the Federal Reserve's priorities and focus. That they're concerned about the labor market and willing to step in and support the labor market. It's an assurance of the reserve's priorities."
The Federal Reserve is now projecting only one rate cut next year. During a Wednesday press conference, Fed Chair Jerome Powell pointed to the three cuts since September and said that "we are well positioned to wait to see how the economy evolves."
However, Powell is on his way out, with his term ending in May, and Trump signaled in a Tuesday interview with Politico that agreeing with immediate interest rate cuts is a litmus test for his next nominee to fill the role.
Trump—who embarked on a nationwide "affordability tour" this week after claiming last week that "the word 'affordability' is a Democrat scam"—also graded the US economy on his watch, giving it an A+++++.
US Sen. Bernie Sanders (I-Vt.) responded: "Really? 60% of Americans live paycheck to paycheck. 800,000 are homeless. Food prices are at record highs. Wages lag behind inflation. God help us when we have a B+++++ economy."
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Fed Interest Rate Cut Shows Trump Agenda 'Pushing Our Economy to the Brink': Economist
"Working families are paying the price" for the president's "reckless" policies, said Groundwork Collaborative's Alex Jacquez.
Oct 29, 2025
As Americans face tariff-related price hikes, surging health insurance premiums, and fallout from the government shutdown, from missed paychecks to no food assistance, the Federal Reserve on Wednesday announced its second interest rate cut of the year.
"Job gains have slowed this year, and the unemployment rate has edged up but remained low through August," the US central bank said in a statement about the Federal Open Market Committee cutting the benchmark interest rate by a quarter of a percentage point to 3.75-4%, its lowest level in three years. "Inflation has moved up since earlier in the year and remains somewhat elevated."
When the Fed slashed the federal funds rate last month, economist Alex Jacquez warned that it would "do little to address" the "economic turmoil" created by President Donald Trump. On Wednesday, the former Obama administration official, who is now chief of policy and advocacy at the think tank Groundwork Collaborative, again took aim at the US leader.
"The Fed's decision only confirms what Americans already know—the economy is slowing, job growth has stalled, prices keep climbing, and consumers are pulling back because they're out of options," Jacquez said in a statement. "Trump's reckless economic agenda is pushing our economy to the brink, and working families are paying the price."
US House Budget Committee Ranking Member Brendan Boyle (D-Pa.) similarly said in a Wednesday statement that "today's rate cut is yet another warning sign about the sorry state of Donald Trump's economy."
"Nearly half of all states are now in or near recession, inflation is climbing, and the labor market is losing strength," Boyle noted. "This is all a direct result of Trump's reckless tariff taxes and his chaotic economic agenda."
"At the same time, working families are facing the largest spike in health insurance premiums in our nation's history," he stressed. "I'll keep fighting to lower costs, protect affordable healthcare, and make sure every American has access to a good-paying job.”
Rohit Chopra, who directed the Consumer Financial Protection Bureau during the Biden administration, before Trump gutted the agency, was also critical of the Republican president on Wednesday.
"While he is not in the room to vote on Fed interest rates, President Trump's shadow looms large over the Federal Reserve and many members seem eager to please him," Chopra said. "While Gov. Lisa Cook is fighting back, markets seem to understand that the Fed's decision-making will be heavily shaped by the whims of the White House."
Trump is trying to oust Cook from the Fed's Board of Governors, which her lawyers call "unprecedented and illegal." The US Supreme Court is set to hear arguments in her case in January; in the meantime, earlier this month, the justices allowed her to remain in her post.
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'Devastating' New Jobs Report Shows Labor Market 'Cracking' Under Trump
"The theory of Trumponomics is failing," said one economist.
Sep 05, 2025
A federal jobs report released on Friday showed the US economy added a mere 22,000 jobs in August in yet another signal of weakness in the US labor market.
Economists had projected the economy would produce 75,000 jobs on the month, which means that the Bureau of Labor Statistics (BLS) numbers released on Friday were well below the consensus estimate.
What's more, the total number of jobs created in July and June were once again revised downward, and the economy as a whole has added an average of fewer than 30,000 jobs over the last three months.
Heather Long, the chief economist at Navy Federal Credit Union, put the bad jobs report in stark terms.
"The labor market is going from frozen to cracking," she said, and then pointed to net job losses in industries including mining, construction, and manufacturing that show significant stress in the blue-collar economy. In fact, the majority of job growth came from the healthcare industry over the last month.
"The US job market is almost entirely dependent on healthcare," she observed. "That's not healthy for the economy."
Justin Wolfers, an economist at the University of Michigan, also said that the new numbers showed a continued deterioration in both the US labor market and the economy as a whole.
"I'm worried," he said. "The economy was in a good place in late 2024. That's no longer true. And the trajectory is, at a minimum, concerning. That's millions of people's lives, and millions of stories of pain."
Wolfers also zeroed in on the fact that manufacturing employment has been contracting for several months, despite US President Donald Trump's pledges to lead a manufacturing revitalization.
"But the Administration has made dramatic policy shift to boost manufacturing, and it just ain't working," he said. "Manufacturing employment fell [by 12,000 jobs], and is down [78,000 jobs] over the year."
Former BLS commissioner Erika McEntarfer, whom Trump fired last month after he baselessly accused her of concocting negative job numbers to harm him politically, argued on Bluesky that the new report's downward revisions of previous monthly estimates are indicative of a labor market that is very quickly cooling.
"The larger-than-usual downward revision last month was in large part driven by a negative skew in the job growth distribution among late reporting firms," she said. "That's unusual, but it's happened before when the pace of job growth slows rapidly. This print is more evidence that was the case."
Mike Konczal, senior director of policy and research at the Economic Security Project and former member of President Joe Biden's National Economic Council, argued the new jobs report demonstrates that "the theory of Trumponomics is failing."
"The first theory of Trumponomics was that tariffs would build up manufacturing work and federal workforce cuts would free up workers for them," he explained. "That's failed. Manufacturing lost jobs almost as fast as the federal workforce (-12 vs. -15K)."
Konczal then showed how Trump's tariffs have hurt his stated goal of bringing back well-paying jobs for blue-collar men, as industries that produce such jobs have also been harmed by his tariffs on foreign goods and materials.
He also pointed out that Trump advisers claimed that mass deportations of undocumented immigrants would create new job openings that native-born workers would rush in to fill.
"But, you guessed it, that's also failing," he said. "Amidst the broader weakening, the native-born unemployment rate is at the highest levels since the pandemic."
Elise Gould, the director of health policy research at the Economic Policy Institute, similarly noted that "there have... been sustained losses over recent months in manufacturing, construction, and mining," in recent months, which she said was "an indication that Trump's blue-collar renaissance is clearly not happening."
Alex Jacquez, chief of policy and advocacy at the progressive advocacy organization Groundwork Collaborative, called the jobs report "devastating," while laying the blame at the feet of Trump.
"Trump's promises to working families have fallen flat," he said. "The unemployment rate is the highest in nearly four years, the economy has lost nearly 40,000 manufacturing jobs this year alone, and millions of workers are unable to find full-time employment. Families are getting fewer chances to secure the American dream in Trump's economy."
Rep. Brendan Boyle (D-Pa.) reacted to the jobs report by issuing a scathing rebuke to Trump and his management of the economy.
"Donald Trump inherited an economy built on years of steady job growth," he said. "In just seven months, he's managed to screw it up—just like he's screwed up everything else in his life. Now, working families are getting squeezed from every direction: higher prices, Republicans' Big Ugly Law ripping health care away from millions, and a job market that's slowing down."
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CBO Confirms Trump Budget Law Will Trigger Over $500 Billion in Automatic Medicare Cuts
"Republicans knew their tax breaks for billionaires would force over half a trillion dollars in Medicare cuts—and they did it anyway," said Rep. Brendan Boyle.
Aug 15, 2025
A report released on Friday confirmed what many Democratic lawmakers have long been warning about: Republicans' massive budget law will trigger significant cuts to Medicare.
The Congressional Budget Office (CBO) released its analysis of the GOP's budget package and acknowledged that it would be required to issue a sequestration, which is essentially a cancellation of budgetary resources.
The sequestration is required under the rules set out by the Statutory Pay‑As‑You‑Go Act of 2010 that requires spending cuts that are equal to a piece of legislation's negative impact on the budget deficit.
The only way to avoid these cuts, said the CBO, would be for Congress to pass "subsequent legislation that would offset the deficit increase, waive the recordation of the bill's effects on the scorecard, or otherwise mitigate or eliminate the statutory requirements."
The CBO said that these cuts could take as much as $45 billion out of Medicare for fiscal year 2026. What's more, the amount cut from Medicare would increase in every subsequent year, resulting in total cuts of as much as $536 billion between 2026 and 2034.
Rep. Brendan Boyle (D-Penn.), the ranking member of the House Budget Committee, excoriated his Republican colleagues for passing a budget that will result in cuts to Medicare, a program that US President Donald Trump repeatedly pledged not to touch during the 2024 presidential campaign.
"For months now, I have been sounding the alarm on the devastating Medicare cuts caused by Trump's Big Ugly Law," he said. "Republicans knew their tax breaks for billionaires would force over half a trillion dollars in Medicare cuts—and they did it anyway. American families simply cannot afford Donald Trump's attacks on Medicare, Medicaid, and Obamacare."
The Republicans' budget package also took a major ax to Medicaid, as it cut spending on the program by an estimated $1 trillion over the next decade. The CBO has already projected that millions of people will lose coverage.
Medicaid cuts are already having a negative impact. Several states have said that they are slashing rates paid to medical providers, which experts have said could result in several hospitals in these states going bankrupt given that many of them were in bad financial shape even before the GOP's budget law passed last month.
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