Wallet issues are always hot topics in American elections. And right now, a majority of voters in the country are dissatisfied with the Trump administration's handling of the economy, inflation and tariffs, according to a recent Washington Post/ABC News/Ipsos poll.
US growth fell to 2.2 percent in 2025, down from 2.8 percent in 2024. It looks worse than during Trump's first year in office in 2017 and President Joe Biden's first year in 2021. And growth is not expected to pick up significantly in the coming years.
Behind the growth figure are several weak economic indicators that point to problems. Inflation is not really falling, which has made the Federal Reserve (Fed) hesitate to cut interest rates.
Job growth a headache
Job growth is another headache. Only 15,000 new jobs were created per month last year. The pace of wage growth has slowed compared with before Trump took office, mortgage rates remain at historically high levels - around 6 percent for 30-year loans - and housing construction continues to decline.
Slower employment growth on the supply side, combined with weak labor demand, will slow household incomes and consumption. Higher productivity growth from AI could work in the opposite direction but also pose new risks for the labor market, says Elisabet Kopelman.
"Bigger, better, richer"
However, she believes that many Republicans are happy with the Trump administration's big tax cuts, broad deregulation and Wall Street's record highs. Many also welcome cheaper gasoline and the fact that Trump has helped create a better playing field for fossil fuels and the defense industry.
Trump himself claimed in this week's address to the nation that there is a "golden age for America" and that the United States is "bigger, better, richer and stronger than ever."
However, many analysts noted that President Trump, in his speech, did not seem to acknowledge that many Americans have found it more difficult to make ends meet.
The challenge for Trump and the Republicans is the waning support of the new voters that Trump attracted in 2024, among traditional Democratic voters and voters without party affiliation, says Kopelman.
