WASHINGTON — In a recent interview following his return to office, Donald Trump attributed his electoral victory to American frustrations surrounding immigration and the rising costs of living, particularly groceries. He highlighted the sharp increases in product prices, remarking how buying basic items like apples and bacon has become increasingly burdensome. Trump stated, “When you buy apples, when you buy bacon, when you buy eggs, they would double and triple the price over a short period of time… I won an election based on that. We’re going to bring those prices way down.”
However, during his initial week in office, Trump’s actions haven’t directly addressed these escalating prices apart from instructing federal agencies to “pursue appropriate actions.” He is concentrating on lowering energy costs, which he believes may have a broader economic impact. His main focus has shifted towards controlling immigration, which he labeled as his “No. 1 issue” shortly after taking office. Trump remarked, “They all said inflation was the No. 1 issue. I disagreed… I talked about inflation too, but how many times can you say that an apple has doubled in cost?”
Trump appears to be relying on the hope that voters will continue to hold former President Joe Biden accountable for the inflated prices. His perspective underscores the reality that presidents typically lack the immediate tools to curb inflation without inadvertently causing adverse impacts on other sectors of the economy.
On the energy front, Trump is advocating for relaxed regulations and increased drilling opportunities. He strives to encourage both domestic and international oil producers to sacrifice some of their profits by boosting output.
At a rally in Las Vegas, Trump criticized the Biden administration for permitting price hikes and vowed to resolve the issue promptly. He stated, “When I think of Biden, I think of incompetence and inflation.” Inflation reached a peak of 9.1% annually in June 2022, largely due to global supply chain disruptions stemming from the pandemic. Although consumer prices have decreased overall since then, they have recently seen a slight uptick, rising from 2.4% in September to 2.9% in December, according to the latest statistics. Some economists caution that Trump’s proposed tariffs and tax cuts may lead to increased inflationary pressures and sustained high-interest rates.
Vice President JD Vance defended the administration’s efforts during an appearance on CBS, asserting, “Prices are going to come down, but it’s going to take a little bit of time, right? Rome wasn’t built in a day.”
Trump’s pivot from directly addressing economic costs could give Democrats an opportunity to claim that he is failing to support working-class citizens, presenting a potential pathway for the party to regain influence in Washington. Senator Chris Murphy of Connecticut pointed out that Trump tends to deflect attention from inflation through topics such as territorial expansion. He commented, “It’s catnip and it causes everybody to stop paying attention to their actual economic agenda, which has nothing to do with lowering costs and everything to do with rigging the economy to help the Mar-a-Lago crowd.”
In a recent Fox News interview, Sean Hannity attempted to steer Trump’s focus to economic issues, remarking, “Let me get to the economy… I’m running out of time.” Trump reassured viewers, saying, “The economy is going to do great,” while noting how inflation was low during his previous term. He insisted prices would not have risen if he had been in office following the 2020 election, despite a global trend of increasing inflation post-pandemic.
It remains uncertain how Trump plans to prompt oil companies and nations to swiftly up production potentially at the cost of their profitability. The Energy Information Administration indicates that domestic oil production has seen an annual growth rate of approximately 8.4%, achieving near 13.5 million barrels per day. Some advisers suggest this could rise by an additional 3 million barrels. Achieving such an increase would be challenging within a year without significant changes to the global market, as the International Energy Agency projects a worldwide increase of 1.8 million barrels per day. Trump has also voiced opposition to expanding renewable energy sources, which may further compel the U.S. to depend on fossil fuels.
EJ Antoni, a research fellow at a conservative think tank, predicted that Trump’s energy production initiatives could lead to lower overall prices. “If you’re going to bring down the cost of energy, you’re going to bring down the cost of all kinds of goods and services,” he asserted.
Nevertheless, there’s a chance that Trump’s broader strategies could inadvertently inflate costs instead of reducing them. For instance, deporting undocumented workers may lead to labor shortages, raising expenses for businesses, while tariffs applied to foreign imports often end up impacting consumers directly.
Trump has suggested that his approach may also involve influencing the Federal Reserve to lower interest rates. He expressed a desire to “demand” lower rates at a global economic summit while noting the Fed’s independence in economic decision-making. In contrast, Biden has prioritized maintaining that independence. The Federal Reserve had been raising benchmark rates since 2022 to curb inflationary pressures successfully enough that they were able to decrease rates late last year. Trump believes that increased oil production could enable him to exert pressure on the Fed’s actions, confidently responding to a question regarding the Fed’s receptiveness to his influence, “Yeah.”
