Can Trump And His Policies Turn The Economy Around Before The 2026 Midterm Elections

Why It Matters

The assessment highlights how policy timing and political feasibility will shape both inflation outcomes and electoral dynamics, informing investors and strategists ahead of the 2026 midterms.

Key Takeaways

• Trump aims to lower prices amid 2026 election pressure.
• Eliminating tariffs could boost affordability, but politically unlikely.
• Ban on institutional home purchases may marginally affect housing prices.
• “Big Beautiful Bill” cuts taxes on tips, overtime, Social Security.
• Inflation remains sticky; policy lags hinder immediate economic impact.

Summary

The video examines whether President Trump can reverse inflation and affordability concerns before the 2026 midterm elections, focusing on a suite of policies ranging from tariff reform to housing market interventions.

It notes that the stock market has logged 53 all‑time highs since the last election, but consumer‑level price pressures persist. Economists argue that eliminating tariffs—currently generating hundreds of billions in revenue—would be the most direct affordability boost, yet political odds suggest the move is unlikely. A recent executive order bars large Wall Street firms from bulk buying single‑family homes, a measure expected to have only marginal impact on housing prices.

The presenter cites a striking line: “the very best thing the President could do … is to eliminate the tariffs,” underscoring the policy’s perceived potency. He also references the “Big Beautiful Bill,” which removes taxes on tips, overtime and Social Security, and the TrumpRx initiative to cap prescription‑drug costs, both of which may produce short‑term windfalls but face offsetting health‑care expense growth.

Ultimately, the analysis warns that policy lags and entrenched voter perceptions make it difficult for any administration to time stimulus for electoral gain. Even if inflation eases modestly, the sticky price environment and limited fiscal levers suggest that Trump’s economic narrative may struggle to sway the 2026 electorate, with implications for markets and campaign strategies.

Original Description

President Trump's focus on the economy and affordability in his State of the Union address sets up a race to bring down prices and change American's attitudes about the economy ahead of the 2026 midterm elections. Those elections threaten to shift control of Congress from Republicans and Trump’s control of Washington along with it. CNBC’s Steve Liesman highlights Trump’s signature policies and describes the inflation risks and lags inherent within economic policymaking.

Reporting by: Steve Liesman

Produced and Edited by: Carlos Waters

Senior Managing Producer: Shawn Baldwin

Additional Footage: Getty Images

Additional Sources: Federal Reserve

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Can Trump And His Policies Turn The Economy Around Before The 2026 Midterm Elections