U.S. President Donald Trump delivered another self-congratulatory speech to Americans after his approval rating on economic policy plummeted, claiming the economy damaged under former President Joe Biden's Democratic administration is recovering, with incomes rising and prices stabilizing. He also offered a rosy forecast that the U.S. economy would experience a "boom" next year.
Trump also pledged to refund tariff revenue to Americans next spring—a populist promise ahead of the midterm elections. Nearly 11 months into his second term, the president remains focused on blaming his predecessor and promoting his own achievements.
Contrary to Trump's self-assessment, polls show 70% of Americans are struggling with the cost of living. Even the Republican Party is gradually distancing itself from Trump ahead of the November 3 midterm elections next year. The president's chief of staff, one of his closest allies, stirred controversy by describing him as having an "alcoholic personality," exposing internal turmoil within the White House.
With growing public dissatisfaction over economic performance ahead of the midterms, Trump is also deliberating more carefully on his choice for the next Federal Reserve chair, seeking someone who will faithfully follow his preference for interest rate cuts.
Trump: 'Worst Inflation Under Biden... Economic Boom Next Year, Record Tax Refunds in Spring'
Trump broadcast a roughly 20-minute address from the White House on the evening of December 17, declaring, "In just one year since taking office, we have achieved results no one could have imagined."
"Over the past 11 months, we have brought more positive change to Washington than any administration in American history," Trump said. "We are reviving an economy that was on the verge of collapse domestically."
The president devoted a significant portion of his speech to criticizing former President Biden and the Democrats. "The previous administration and their allies in Congress drained trillions of dollars from the treasury and pushed prices to unprecedented levels," Trump said. "I am now bringing those elevated prices down very quickly."
"When I took office, inflation was at its worst in 48 years," he continued. "All of this happened under a Democratic administration, and that's when we first started hearing about 'affordable cost of living.'"
Indeed, due to the surge in liquidity during the COVID-19 pandemic, the average annual inflation rate during Biden's four-year term reached 5%. The U.S. Consumer Price Index peaked at 9.1% in June 2022, the highest in 41 years since 1981. Unstable prices are widely considered a decisive factor in the Democrats' loss of power to Trump.
Trump also praised his tariff policy. "I have attracted the largest investments in American history," he said. "This means job creation, wage increases, economic growth, new factories, and much stronger national security."
On the economic outlook for next year, Trump declared, "We are on the verge of an economic boom the likes of which the world has rarely seen. For the first time in years, wage growth is significantly outpacing inflation."
He also announced plans to "open 1,600 new power plants within the next 12 months," predicting that "electricity costs and overall prices will drop significantly."
Trump unveiled a series of populist economic promises with the midterm elections in mind. He claimed that the tax cut legislation enacted this year—the One Big Beautiful Bill Act (OBBBA)—would save many American families $11,000 to $20,000 annually. "Next spring will be the largest refund season in history, thanks to the effects of tariffs and this legislation," he said.
He also announced that 1.45 million military personnel would receive a "warrior dividend" of $1,776 per person before Christmas. Trump added that he would unveil "the most aggressive housing reform policy in American history" in the new year.
On foreign policy, Trump boasted, "In 10 months, we have ended eight wars." He claimed, "We ended Iran's nuclear threat and ended the Gaza war. For the first time in 3,000 years, we brought peace to the Middle East and secured the release of hostages."
Economic Approval at 36%, Lowest of Both Terms—Trump Resorts to Mocking Predecessors
Trump's address appears to have been prompted by concerns over significant public discontent with economic conditions. A defeat in next year's midterm elections could push him into lame duck status less than two years into his term. The November 3 midterms will see elections for all 435 House seats, 34 of 100 Senate seats, and 36 of 50 governorships.
According to a PBS/NPR/Marist poll of 1,440 adults conducted December 8-11 and released on December 17 (margin of error ±3.2 percentage points), only 36% of respondents said "Trump is handling the economy well." This was the lowest figure across both of Trump's terms and matched Biden's economic approval rating at the peak of inflation in 2022. The share who said they "do not approve of Trump's handling of the economy" reached 57%.
Notably, 70% of respondents described the cost of living in their area as "very difficult to afford" or "impossible to afford"—the highest since Marist began asking the question in 2011. Only 30% said the cost of living was "affordable" or "very affordable," down sharply from 55% in previous surveys. Despite Trump's claims, Americans' perception of economic conditions has worsened compared to the Obama and Biden administrations.
With economic issues dragging down his approval, only 38% of respondents said "Trump is doing a good job as president"—the lowest since the end of his first term. Those who said he "is not doing a good job" reached 54%.
Even as his approval ratings hit bottom, Trump continues to mock his predecessors and defend himself, as he did in his address. On the same day, Reuters reported that the White House installed new plaques beneath photographs of former presidents in the West Wing corridor, featuring Trump's personal assessments of each.
Referring to Biden, whose display features a photograph of an autopen rather than a portrait, Trump wrote: "Sleepy Joe Biden is the worst president in American history" and "was elected as a result of the most fraudulent election." He added that Biden "suffered severe mental decline and used an autopen more than ever before."
Trump described former President Barack Obama as "the most divisive political figure in American history." Of former President Bill Clinton, he noted that "his wife Hillary Clinton lost to President Trump in the presidential election." He criticized fellow Republican George W. Bush over the Afghanistan and Iraq wars, stating, "Neither should have happened."
Chief of Staff Says President Has 'Alcoholic Personality'—Republicans Show Signs of Distancing
On December 16, reports emerged that White House Chief of Staff Susie Wiles had described Trump as having an "alcoholic personality." Wiles is someone Trump has repeatedly expressed strong confidence in.
In an interview with Vanity Fair, Wiles said, "President Trump has the personality of an alcoholic. He acts from the perspective that there is nothing he cannot do." Wiles, whose father struggled with alcohol addiction, made the comparison based on personal experience.
