Trump keeps heralding an economic boom, but even a solid jobs report is causing problems for him

WASHINGTON (AP) – President Donald Trump has spent 20 months promising that America was on the cusp of an economic boom.

Key points

• Stupidity causes inflation, Trump vented in the Oval Office, as he declared it crazy that the stock markets fell Friday on inflation reservations.
• But speaking from the Oval Office, Trump instead introduced into a grievance session concerning inflation and interest rates.
• Trump blamed his inability to deliver stronger expansion on higher interest rates for U.S.
• The combination over his second term of a drop-off in hiring and higher rates has dogged Trump and his pledge to instantly unleash historic levels of expansion.

For context, the August job numbers might have been a welcome break from after months of sluggish hiring and reservations concerning inflation that have been weighing on Trump and his party two months from Election Day. But speaking from the Oval Office, Trump instead introduced into a grievance session concerning inflation and interest rates. His anger was aimed at the financial markets, the Federal Reserve and U.S. Trade partners. He objected to the commonly accepted notion in economics that the surprise gain of 162, 000 jobs in August could contribute to inflationary pressures.

"Success does not cause inflation. Stupidity causes inflation, " Trump vented in the Oval Office, as he declared it "crazy" that the stock markets fell Friday on inflation reservations.

Notably, the combination over his second term of a drop-off in hiring and higher rates has dogged Trump and his pledge to instantly unleash historic levels of expansion. "When I win the election, we will immediately begin a brand new Trump economic boom, " Trump remarked at an August 2024 rally in North Carolina. But so far, the economy has grown at roughly 2% annually, slower than the gains during the Biden administration.

Trump blamed his inability to deliver stronger expansion on higher interest rates for U.S. Administration debt, saying on social media that America could retaliate by stopping trade with foreign countries. Rates have been climbing in response to persistently high inflation fueled by Trump's tariffs and oil shortages from the Iran war. The national debt has now crossed the daunting threshold of $40 trillion and rates on the 10-year U.S. Treasury note on Friday rose to 4.79%.

In short, trump keeps heralding an economic boom, but even a solid jobs report is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.