In speech, Trump minimizes fears about the economy and blames Democrats

Speaking on Tuesday night (24) to one of his largest audiences and possibly at the most delicate moment of his second term, United States President Donald Trump repeatedly returned to the same point in his State of the Union address on the economy: everything is going great.

In a firm tone, Trump sought to steer Americans into a more positive economic mood, trying to defuse cost-of-living concerns that are likely to be at the heart of the midterm elections, with statistics and self-complacency.

“Inflation is plummeting. Incomes are rising rapidly. The booming economy is stronger than ever,” he said at the beginning of the speech, which lasted almost two hours.

In speech, Trump minimizes fears about the economy and blames Democrats

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The president did not present any new relevant proposals to address the cost of living. And when he admitted that voters may have doubts about prices, he resorted to the usual script of assigning blame to third parties.

“You caused this problem,” he told the Democrats in attendance, saying the party’s pricing messaging was “a dirty, disgusting lie.”

Before the speech, advisers had described the night as an opportunity to present a forward-looking economic agenda and serve as a “reset” before the elections. However, Trump focused more on praising his tax package and trade policies than on proposing new measures for the cost of living, a sign that the issue still puts pressure on the White House.

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Pollster Frank Luntz questioned Trump’s disdain for the term “affordability.”

“It was a mistake,” he wrote in X. “Mocking the word ‘affordability’ when Americans still feel the pinch at the grocery store is the kind of moment that resonates badly.”

The high-profile speech came after a difficult period for Trump. The government was already facing criticism for the violent actions of immigration agents and the consequences related to the Jeffrey Epstein files, when the US Supreme Court last week imposed a significant setback to its tariff agenda.

In addition to the positive portrayal of the economy, Trump tried to turn the page by mobilizing patriotic emotions, with a sequence of moments of popular appeal. Recognized the US hockey team for its Olympic title and awarded medals for acts of heroism. It also highlighted the upcoming World Cup, the 2028 Summer Olympics in Los Angeles and the US 250th anniversary celebrations as events Americans can look forward to.

Still, it did not avoid divisive themes. He criticized Democrats for their positions on immigration and policies for transgender people and sought to provoke reactions to create tension live. In one of these moments, he accused Somali migrants of committing billions of dollars in fraud in Minnesota, a justification used to tighten actions in the state, which generated a strong reaction after the death of two American citizens.

Asking lawmakers to stand if they agreed that the government’s “first duty” is to protect U.S. citizens and “not illegal aliens,” Rep. Ilhan Omar, a Democrat who represents the district at the center of the controversy, shouted that Trump “killed Americans.”

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Republicans applauded the trap the president tried to impose on Democrats. “When asked if they believe their first duty is to protect the American people, Democrats remained seated. Unfortunately, I’m not kidding,” Arkansas Governor Sarah Sanders, a former Trump adviser, wrote on X.

Democrats, in turn, classified the speech as poor in solutions for voters facing economic difficulties.

“It’s a bad night for American families,” wrote Senator Elizabeth Warren, Democrat of Massachusetts, on social media. “Trump said nothing about his promise to cap credit card interest. Nothing about making child care more affordable. Nothing about consumer refunds for his illegal fees.”

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Trump says the economy is now his and faces challenge selling it

Early in his speech, Trump presented a list of economic indicators, including slowing inflation, falling mortgage rates and falling gasoline prices. He also highlighted tax cuts included in his main economic law, new savings accounts for children and called on Congress to pass a law that would prohibit institutional investors from buying single-family homes.

“Known recipe, well executed. The question is whether people believe this represents ‘a historic turning point,’ as he stated, and, if so, whether they are satisfied with the direction,” Democratic strategist David Axelrod, a former adviser to former President Barack Obama, wrote in a message.

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Trump allies hope many voters will become more optimistic in the spring as they receive larger tax refunds due to the tax law passed last year. The hypothesis has not yet been tested and, at the moment, large segments of the electorate are showing dissatisfaction. A recent Washington Post-ABC News-Ipsos poll found that the majority disapprove of the president’s management of the economy, inflation and tariffs.

Trump promised to move forward with his measures on other legal bases, stating that “almost all countries and companies want to maintain the agreement they have already made”.

Although he placed great emphasis on foreign policy in this term, he maintained the focus mainly on domestic issues in his speech, in a sign of attention to criticism that the international agenda took him away from domestic concerns.

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Still, he again warned Iran about the country’s nuclear ambitions ahead of talks between American and Iranian officials in Geneva. He also highlighted the capture of former Venezuelan president Nicolás Maduro and reiterated the hope of ending the conflict between Russia and Ukraine.

Trump showed up to give an economic speech and, for the most part, stuck to that goal.

Regarding prices, he asked Americans to “hold on just a little longer while we are reducing.” The question now is whether voters beyond his “Make America Great Again” base will be willing to listen to him.

©️2026 Bloomberg L.P.

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