Tourism · Gulf Today
President Donald Trump has spent 20 months promising an economic boom, but a surprisingly positive jobs report on Friday provoked frustration. Speaking from the Oval Office, Trump criticized inflation and interest rates, stating, "Success does not cause inflation. Stupidity causes inflation." He also threatened to stop trade with foreign countries if the economy does not improve.
Trump blamed higher interest rates on the Federal Reserve and his own tariffs, which have contributed to inflation. The national debt has reached $40 trillion, and interest rates on the 10-year U.S. Treasury note rose to 4.79%.
Despite his claims, Trump’s economic approval rating has dropped to 32%, down from 50% in 2018. His administration’s policies, including tariffs and tax cuts, are seen as contributing to inflation and high interest rates. While Trump’s aides argue AI and tariffs will boost growth, economists like Joe Brusuelas and Ernie Tedeschi warn that growth alone may not solve budget deficits.
The administration is promoting growth at the G20 summit but also working on a plan to reduce the national debt, though political risks remain high. Trump’s threat to cut trade could further damage his economic credibility.
Source: Fortune
