UPDATE: In a powerful speech delivered earlier today, former President Donald Trump touted significant progress in reducing inflation during his second term, claiming core inflation has plummeted to its lowest levels in over five years. He stressed that the current economic landscape starkly contrasts with the inflation spikes seen under the Biden–Powell administration, attributing these improvements to his administration’s decisive policies.
Speaking during a high-stakes address, Trump declared, “The Biden administration and its allies in Congress gave us the worst inflation in the history of our country, but in 12 months, my administration has driven core inflation down to 1.7%.” This figure marks the three-month annualized rate of the consumer price index (CPI) excluding food and energy at the end of January 2025, and the last time it reached this low was in the first quarter of 2021.
Trump’s assertions come amid ongoing debates about the effectiveness of his economic policies. He emphasized that inflation has drastically decreased from 3.4% at the end of 2024, showcasing a remarkable turnaround that many critics initially deemed impossible. He stated, “The math here is pretty simple,” underscoring the tangible results of his administration’s efforts.
While Trump faced skepticism regarding his policies, including tariffs and tax cuts, he argued that the current data—showing core goods inflation at just 1.1% year-over-year—debunks claims that his strategies were detrimental. “Even if we exclude the Biden inflation era, we’re still below the long-term averages,” he insisted.
The speech resonated with supporters, as many Americans are feeling the pinch of rising prices and are eager for solutions. Trump’s rhetoric not only highlights his administration’s accomplishments but also seeks to galvanize support as he prepares for upcoming elections.
As the economic debate heats up, attention turns to the Federal Reserve and how these developments may influence future policy decisions. Analysts are watching closely for potential shifts in interest rates, given the favorable inflation data reported.
WHAT’S NEXT: Trump’s address not only serves as a defense of his economic record but also sets the stage for intense discussions on fiscal policy leading up to the elections. Expect further analysis and reactions from both supporters and critics in the coming days as the impact of this speech unfolds across the nation.
Stay tuned for live updates as this story develops and additional insights emerge from economic experts on the implications of Trump’s claims.
