Donald Trump, who heavily emphasized economic discontent during his campaign, now confronts a shifting economic landscape that could challenge his political momentum. While he criticized Democrats over inflation and cost-of-living concerns to regain office, recent data suggest emerging vulnerabilities in the U.S. economy that may complicate his agenda.\n\nIn August, the economy generated just 22,000 jobs, a figure that signals a slowdown in hiring, according to Lydia DePillis, a reporter covering economic trends. The situation appears more concerning when viewed historically: June’s employment numbers were revised downward to show a loss of 13,000 jobs, marking the first monthly decline since December 2020. These developments point to a labor market that may be losing steam.\n\nAdditional economic indicators also raise concerns. Core inflation, which strips out volatile components like food and energy, increased over the summer. Trump’s trade policies, particularly his tariff measures, have contributed to upward price pressures on consumer goods such as furniture, clothing, and household appliances. Meanwhile, manufacturing output has contracted for six consecutive months, suggesting weakening industrial demand.\n\nThe path ahead remains uncertain as the nation approaches the next round of congressional elections. However, there may be a silver lining for the former president: a softer jobs market could increase the likelihood of interest rate reductions, a move he has long advocated. As Colby Smith noted, Federal Reserve policymakers might interpret sluggish employment growth as justification for monetary easing.\n\nDespite this possibility, the current economic trajectory presents a clear challenge for Trump and his allies, who must now navigate a reality that contrasts with earlier promises of rapid economic revival.\n— news from The New York Times\n\n— News Original —\nWill Trump Have to Run From the Economy?\nLast year, Donald Trump couldn’t stop talking about the economy. \n\nAs a presidential candidate, he assailed Democrats for inflation and rode the persistent malaise over the high cost of living right back to the White House, promising swift relief even though economists warned that his plans could actually drive prices higher. \n\nToday’s lackluster jobs numbers are a reminder of how quickly the issue could present him, and his party, with political peril as elections approach. \n\nThe economy added only 22,000 jobs in August, which, my colleague Lydia DePillis explained, is a sign that the labor market appears to be stalling. Looking backward, the news is even worse: A revision to June’s figures shows the labor market actually lost 13,000 jobs that month, making it the first negative number since December 2020. \n\nThere are other signs of trouble. A key measure of underlying inflation rose over the summer as Trump’s tariffs put pressure on prices, driving up the costs of things like furniture, appliances and clothing. Manufacturing activity has been shrinking for six months. \n\nIt’s not clear right now just what will happen to the economy between now and next year’s midterm elections. (And today’s news might deliver an upside for Trump: The darkening labor market could mean that he gets his long-sought cut to the interest rate, as my colleague Colby Smith pointed out today.) \n\nBut what is clear, right now at least, is that the president has a problem.
