Trump economy at 18 months shows mixed results

Eighteen months into President Trump’s second term, the U.S. economy presents a contradictory picture: solid job growth and consumer spending coexist with persistent inflation and rising national debt. The Federal Reserve has kept interest rates elevated to cool price pressures, yet the labor market remains tight, with unemployment near historic lows. Manufacturing output has ticked up, boosted by new tariffs and reshoring incentives, but trade partners have retaliated, raising costs for importers. The stock market, after a strong 2025, has been volatile in recent months. Homebuyers face high mortgage rates, and household savings have dipped. The administration points to GDP growth above 2.5 percent as validation of its tax cuts and deregulation. Critics argue that the expansion is fragile, relying on deficit spending that could eventually crowd out private investment. Small business optimism, while still positive, has faded from its peak. Overall, the economy shows resilience but also signs of hitting a ceiling, with many families feeling squeezed by higher living costs.