President Donald Trump promised that 2026 would be a bumper year for economic growth, but instead it has kicked off with job losses, rising gasoline prices and more uncertainty about America’s future.
President Donald Trump heralded 2026 as a stellar year for growth, yet it has launched amid job cuts, climbing gasoline costs and deepening uncertainty about America’s path. In his State of the Union speech under two weeks ago, the Republican leader boasted: “The roaring economy is roaring like never before.” Fresh jobs, pump and stock data paint a picture of Trump’s bold claims turning into a faint echo.
This mismatch between forecasted boom and erratic outcomes could shape midterm elections, as Trump fights to hold Republican majorities in the House and Senate. Ongoing tariff tensions, now compounded by the Iran war’s oil and gas inflation risks, challenge the narrative. The White House insists it’s early days, with robust expansion ahead.
“WOW! The Golden Age of America is upon us!!!” Trump exulted on social media February 11, after January’s 130,000 job gains.
Job market weakens, undermining native worker gains
The momentum has since faltered sharply. February’s report revealed 92,000 job losses, with downward revisions to January and December—December now a 17,000-job drop. Volatility aside, a persistent slump emerges: excluding health care, the economy has lost about 202,000 jobs since Trump’s January 2025 inauguration. Officials highlight non-housing construction gains as a hiring bright spot.
Trump touts jobs favouring US-born workers over immigrants, but data contradicts. Native-born unemployment rose from 4.4% to 4.7% over 12 months, swelling the job-seeker pool among those he pledged to prioritize via immigration curbs.
Iran strikes spike gas prices, crush energy narrative
Trump has championed low energy costs to tame inflation: In a pre-Iran attack Texas speech, he declared, “Slashing energy costs… you just cut the cost of everything.” He touted sub-national average declines to claim cheaper driving.
Iran strikes starting February 28 shattered that. Pump prices surged 19% in a month to $3.45 nationally (AAA), with Goldman Sachs forecasting inflation climbing from January’s 2.4% to 3% if oil stays high. The administration eyes quick conflict resolution or Strait of Hormuz tanker boosts.
White House deputy press secretary Kush Desai stated: “The president has been clear about short term disruptions due to Operation Epic Fury… President Trump’s economic agenda continues to unleash robust private sector job, investment, and economic growth.”
Stocks dip, productivity rises but midterms loom
Trump’s staple boast—“We set the all-time record… with the Dow going to 50,000”—feels outdated. The Dow fell 5% last month, though up overall like under Biden. Reversal hinges on war’s end and profits; the dip warns, especially with pushes for “Trump accounts” to broaden investing.
University of Michigan’s Joanna Hsu noted February’s stock-owner sentiment gains offset by non-owners’ drops. A bright spot: Q4 business productivity rose 2.8% (Labour Department), fuelling long-term potential via tech. Yet labour’s income share hit a record low, per Mike Konczal of the Economic Security Project.
Trump bashed Biden’s “stagflation” at January’s Davos: low growth, high inflation. Reality favours Biden’s 2024 (2.8% growth) over Trump’s 2025 (2.2%); Fed’s PCE inflation matched at 2.6%. Trump sidestepped Biden-era spikes but lags in growth and jobs.
With inputs from agencies
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