President Donald Trump said on Monday that the U.S. is in an era of economic prosperity as “prices are coming down.”
“This is also the golden age of America because we are doing better than we’ve ever done as a country,” Trump said while addressing affordability in front of key political figures and McDonald’s franchisees and executives in Washington at the McDonald’s Impact Summit. “Prices are coming down and all of that stuff.”
Trump told audience members that inflation is “normal” after dropping from its highest level in more than 40 years.
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While inflation has dropped significantly from the high of 9.1% in June 2022, the largest increase since 1981, it remains elevated, forcing households to continue cutting back on discretionary spending.
In recent months, inflation has even trended higher as tariffs raise costs for businesses and are subsequently passed on to consumers. In September, inflation reached 3% for the first time since February, above the Federal Reserve’s 2% target rate.
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A November report by the Federal Reserve Bank of New York revealed that American households’ debt burdens increased to the highest level on record in the third quarter of 2025. U.S. consumer sentiment also declined to its lowest level in more than three years and near an all-time low as households’ concerns about the economy mount.
The University of Michigan’s Index of Consumer Sentiment preliminary reading for November was 50.3, well below the 53.2 expected by economists polled by LSEG. That’s the lowest level for consumer sentiment reported by the index since a reading of 50 in June 2022, when the U.S. economy was beset by the highest level of inflation in 40 years.
Still, Treasury Secretary Scott Bessent promised relief for American wallets in 2026, telling Fox News earlier this month it will be a “blockbuster” year.
Bessent said that the One Big Beautiful Bill Act provides major incentives for companies to build factories in the U.S. and create American jobs, while also delivering tax relief for tipped workers, overtime pay and Social Security income. Those provisions, Bessent said, will lead to “big refunds” that amount to another direct benefit for working families.
Bessent also addressed speculation that Trump may offer tariff rebates to certain households, outlining what the plan could look like.
“The president’s talking about a $2,000 rebate, and that would be for families making less than, say, $100,000,” he said.
FOX Business’ Eric Revell contributed to this report.
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