Team Trump Signals an Economic Rebound

The usual Sunday talk shows have yielded a couple of interesting excerpts from two Trump administration officials on the economic outlook for the next few months.

First, on ABC's This Week, host Jonathan Karl spoke with National Economic Council Director Kevin Hassett, who made some comments on the Trump vs. Biden economic policies.

NEC Director Kevin Hassett: Purchasing power dropped by about $3,000 under Joe Biden because the wages didn't keep up with prices. Under @POTUS, it's already gone up by about $1,200. We understand that people still feel the pain of the high prices, but we're closing the gap fast. pic.twitter.com/7cdUh38vTa
— Rapid Response 47 (@RapidResponse47) November 16, 2025

Here's how that conversation went:

Kevin Hassett: Well, first of all, if you look at the history of inflation, right, what happened was right away, Democrat spending in Joe Biden's term, and we got inflation up almost to ten percent. It averaged five percent over the four years. And that has created a situation where, for example, mortgage rates went up, and so the typical payment for a monthly mortgage payment almost doubled. The, a bag of groceries that cost almost $400 when President Trump left office, is $500 or $550 when President Trump came back this time. And so there's this really big hole that's been dug. And then the question you could also ask of an economist is, how do I summarize all this, different prices, everything? And one of the ways you could do it is just look at purchasing power, the real wage. Purchasing power - I'll just finish this, then I'll get back to you - Purchasing power dropped by about $3,000 under Joe Biden, because the wages didn't keep up with the prices. Under President Trump it's already gone up by about $1,200. We understand that people still feel the pain of the high prices. But we're closing the gap fast.

The economy, of course, as I'm continually pointing out, is like a supertanker; it doesn't turn on a dime.

Next, on Fox News' Sunday Morning Futures with host Maria Bartiromo, Treasury Secretary Scott Bessent appeared to discuss inflation and growth, specifically in the first quarter of 2026.

.@SecScottBessent: "It's going to be through growth... In the first two quarters, we are going to see the inflation curve bend down and the real income curve substantially accelerate — and when those two lines cross, Americans are going to feel it." pic.twitter.com/BKnWyZyKsN
— Rapid Response 47 (@RapidResponse47) November 16, 2025

Secretary Bessent said:

The real thing that is going to happen, that is going to give Americans real purchasing power increases, it's going to be through growth. We passed the One Big Beautiful Bill. I am also the IRS Commissioner, and I can see that working Americans, thanks to the president living up to his campaign promises, no tax on tips, no tax on overtime, no tax on Social Security, deductibility of auto loans if you buy an American car, they're going to be substantial refunds in the first quarter of '26. Working Americans will change their withholding, and they will get a bump up in their real incomes. So, I would expect in the first two quarters, we are going to see the inflation curve down, and the real income curve substantially accelerate, and when those two lines cross, Americans are going to feel it. But Maria, I will tell you what we're not going to do. What we're not going to do is tell the American people that they don't know how they're feeling, which is what the Biden administration did. They said it was a (inaudible), you don't know how good you have it, and we're working every day to get these prices down.

Note the timing in Secretary Bessent's predictions: The first and second quarters of 2026. This will be key.

Did You Ever Think You'd Get Your Economic Updates From DoorDash? Well They've Got Some Big News

Everything right now is about 2026. The economy will be the key to the midterms, and the midterms will be key to the Trump administration's efforts for 2027 and 2028 - up to the 2028 presidential elections. If the economy isn't broadly seen to be improving by election day, 2026, it makes it that much harder for the GOP to keep control of the House of Representatives and the Senate; losing either or both to the Democrats would hobble President Trump's efforts for the second half of his term, as well as very likely distracting him with more sham impeachments.

As someone once said, "It's the economy, stupid," and that has never been truer than now. It's good to see that the Trump administration is out front with their messages, but there will also need to be some very tangible results.

Editor’s Note: Thanks to President Trump’s leadership and bold policies, America’s economy is back on track.

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