Trump Keeps Promising an Economic Boom, but Even a Strong Jobs Report Creates Problems for Him
Translated from English and summarized by DistantNews. Read the original for the full story.
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- The U.S. economy added 162,000 jobs in August, but President Donald Trump responded by criticizing inflation, interest rates, financial markets and trade partners.
- Trump has promised rapid, historic growth, while the economy has expanded at roughly 2% annually and hiring has weakened during his second term.
- Economists cited in the report said the administration’s credibility had suffered as its predictions diverged from economic conditions.
A surprisingly positive jobs report gave Donald Trump the kind of economic news he has been promising, but the president responded with anger rather than celebration. The United States added 162,000 jobs in August, yet Trump used remarks from the Oval Office to complain about inflation, interest rates, financial markets and trade partners.
Success does not cause inflation. Stupidity causes inflation.
Trump rejected the idea that stronger employment could add to inflationary pressure. “Success does not cause inflation. Stupidity causes inflation,” he said, calling it “crazy” that stock markets fell because of inflation concerns.
The report arrived after months of sluggish hiring and concern about rising prices. Trump has spent 20 months saying the country stood on the edge of an economic boom. At a rally in North Carolina in August 2024, he promised, “When I win the election, we will immediately begin a brand new Trump economic boom.” So far, economic growth has run at about 2% a year, below the gains recorded during the Biden administration.
When I win the election, we will immediately begin a brand new Trump economic boom.
Trump blamed higher interest rates on his inability to produce stronger growth. He said the United States could retaliate by stopping trade with foreign countries, while the report linked rising rates to persistent inflation fueled by his tariffs and oil shortages from the Iran war. The national debt has passed $40 trillion, and the yield on the 10-year Treasury note reached 4.79% on Friday.
The administration's credibility on growth, inflation, rates, debt and deficit dynamics have taken a hit given the outsized predictions that are not aligned with economic reality
Joe Brusuelas, chief economist at RSM US, said the administration’s credibility had weakened on growth, inflation, rates, debt and deficits because its predictions had exceeded economic reality. Trump also argued that lower Federal Reserve rates could produce growth of “12, 13, 14, 15%” and said gross domestic product could break every record, despite the inflation risks economists associate with easier monetary policy.
12, 13, 14, 15%
About this summary
Originally published by PBS NewsHour in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.
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