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Tue, 20 Oct 2026

Tue, 20 Oct 2026 How is the US economy really doing under President Trump?

Ahead of the midterms Trump has boasted about the performance of the US economy. BBC Verify looks at inflation, jobs and economic growth in the country.

* GDP growth rate: 2.2% (annualized) and 3.2% overall since 2024, surpassing other G7 economies
* Inflation rate: 3.7%, still lower than the peak of 9% under Biden in 2022 but higher than when Trump took office
* Median household income: $87,460 (a 2.6% increase since 2025)
* Job creation: average of 150,000 jobs per month, with a slight decline in manufacturing employment
* Unemployment rate: 4.2%, relatively low and unchanged since Trump's second term began
* Government borrowing: federal deficit increased to $2 trillion (6% of GDP) and projected to rise to above 8% by 2030, raising concerns about future financial crises Challenges Ahead
* High government borrowing rates: 10-year US government bond yield above 5%, highest since the global financial crisis
* Increased market cost of borrowing for American households: rising interest rates on mortgages and other loans
* Growing national debt: exceeding 100% of GDP, raising concerns about future financial stability Mixed Economic Legacy The Trump administration's economic policies have had a mixed impact on the US economy. On one hand, the country has experienced strong GDP growth, low unemployment, and rising median household incomes. However, inflation remains a concern, and government borrowing has increased significantly, putting upward pressure on interest rates and potentially threatening future financial stability. The overall picture suggests that the Trump administration's economic policies have had both positive and negative effects on the US economy.