July 19, 2026

Trump Economy

An unexpected drop in the Consumer Price Index (CPI) of 0.4% is leading some economists to revise their expectations of a flat economic outlook for this quarter. The price drop is the biggest since April 2020, just before Biden took office.

The new annual inflation rate is down to 3.5% with signs of further price easing continuing. While economists expected some drop, this drop was more than twice what was expected.

Inflation Numbers Beat Predictions, Deliver Great News for Americans – RedState redstate.com
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The June inflation numbers just dropped, and they’re delivering some great news.

As our sister site Townhall reported, the numbers crushed it, coming in much better than expected.

The consumer price index, a broad measure of costs for goods and services across the U.S. economy, was lower than expected across the board. The CPI fell a seasonally adjusted 0.4% for the month, bringing the annual inflation rate down to 3.5%.

Economists surveyed by Dow Jones had been looking for a drop of 0.2% and an inflation rate of 3.8%, following the 4.2% reading in May. The monthly decline in headline inflation was the biggest since April 2020.

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For decades, video games have been a go-to hobby for Alyx Green. But in recent years, Green has felt priced out.

Instead of buying the biggest releases, the Illinois graduate student has opted for cheaper alternatives from smaller studios or turned to board and card games. In some cases, the 31-year-old watches videos of others playing hot games on YouTube in lieu of actually playing.

“The price has been going up,” Green said. “It’s just hard to keep up.”

U.S. consumers have for years grappled with “funflation,” used to describe the sharply higher prices for live experiences like concerts or sporting events that were halted during pandemic lockdowns.

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U.S. Trade Representative Jamieson Greer confirmed that the Trump administration will not renew the U.S.-Mexico-Canada Agreement (USMCA) trade agreement in its current form after a joint review.

The USMCA replaced NAFTA during President Donald Trump’s first term.

“The United States will continue to engage with Mexico and Canada to address the Agreement’s shortcomings and our trade deficits with these countries,” announced Greer. “However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination.”

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Congress has passed “the largest housing bill in decades” on Tuesday. Today’s show breaks down how this might help Americans.

“This is a step in the right direction. Now and then, you have people who listen,” Crowder said.

One of the most important points in this bill is that it bans investors from buying up single-family homes.

According to AHF:

Passed by the Senate a day earlier, the 21st Century ROAD to Housing Act brings together a wide range of provisions aimed at making housing more affordable and encouraging housing construction.

The final version of the bill contains key priorities for the affordable housing industry, including raising the public welfare investment (PWI) cap from 15% to 20%. This opens the door to banks increasing their investments in affordable housing.

One of the most debated points was around banning institutional investors from buying single-family homes. While the final version includes restrictions on institutional investor buyers, it removes some of the language that would have limited the development of build-to-rent properties, according to housing advocates.

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The House appeared poised Tuesday to pass Congress’ most significant housing legislation in decades — a bid by both parties to show midterm voters that they’re paying attention to affordability concerns ahead of November’s election.

The legislation, which the Senate passed Monday, aims to boost the housing supply through dozens of targeted provisions whose effects are expected to be seen over the next several years. In California, measures to provide federal funding for housing production in big cities could be particularly significant.

The bipartisan agreement over the legislation, after weeks of negotiation, marks a highly unusual collaboration in the divided Congress. It reflects growing public pressure on Washington to address economic issues, at a time when Americans’ economic woes are deepening amid inflation, elevated gas prices and the ongoing effects of President Trump’s tariffs.

The bill aims to help housing supply by removing regulatory barriers to building affordable housing units, preventing large investors from buying up single-family homes and incentivizing housing production in cities with federal funding, among other measures.

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FIRST ON THE DAILY SIGNAL—In an effort to beef up America’s manufacturing and reduce reliance on foreign companies, the Export-Import Bank, a federal credit agency, is unveiling a new loan opportunity for manufacturers.

Specifically, the bank is now “offering lender guarantees of up to 90% on equipment loans and operating leases” to American small and medium-sized manufacturers, a move it says will accelerate “the reindustrialization of America.

The bank, which was established in 1934, seeks to provide financing for American exporters to give them a competitive advantage.

The announcement of the initiative comes after the National Security Council—which advises the president on military and foreign policy—held a round table discussion Monday with the heads of EXIM, the Department of Commerce, and the Small Business Administration on the topic of reindustrialization.

“For too long, the United States has relied on foreign production of machine tools and manufacturing machines,” reads an EXIM document explaining the project.

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The traditional single-income family once familiar in American culture has continued to decrease.

A new analysis from the Pew Research Center has found that for the first time in American history, a majority of households with children now have two full-time working parents. According to 2025 Census Bureau data, 52 percent of married or partnered couples raising children under 18 both work full-time jobs.

The traditional single-income family once familiar in American culture has continued to decrease, with just a quarter of households now consisting of a father working full-time while the mother remains at home. Meanwhile, families increasingly depend on two incomes to maintain a middle-class lifestyle. Under former President Joe Biden, inflation surged to levels not seen in decades. The Consumer Price Index peaked at 9.1 percent in June 2022, the highest rate in more than 40 years. While inflation eventually slowed under the current Trump administration, prices never returned to pre-pandemic levels, leaving families dealing with higher costs for housing, food, energy, insurance, childcare, and transportation.

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The national average price for regular gas dropped again on Thursday, falling below the $4-per-gallon threshold to $3.999, according to AAA. It marked the fourth straight week that gas prices in the country have decreased. Fuel costs have dropped 52 cents per gallon over the last month. Thursday’s gas price decrease comes the day after the United States and Iran signed a memorandum of understanding to end their military conflict and reopen the Strait of Hormuz.

It is the first time the national average price for a gallon of regular gas has been below $4 since March 30. Gas prices began to drop across the country shortly after Memorial Day weekend, traditionally recognized as the start of the summer driving season, which usually correlates with higher prices at the pump. A few days earlier, gas prices reached $4.564 per gallon on May 21, a record high price for 2026, and the most expensive national average gas price in the U.S. since 2022. It was also the highest gas price since President Donald Trump took office in either term.

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Wall Street’s major indexes ended sharply higher on Thursday, with stocks extending gains after U.S. President Donald Trump said he canceled planned strikes against Iran, and on the eve of the market debut of Elon Musk’s SpaceX.

Hours before the expected strikes, ‌Trump said ⁠on Truth Social ⁠that negotiations with Tehran had advanced to the highest levels of Iran’s leadership and had been okayed by a broad coalition of regional powers.

Oil prices dropped sharply, while stocks added to their rebound from the prior session’s selloff. On Wednesday, major Wall Street indexes fell more than 1% and the S&P 500 Technology Index confirmed a correction.

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Washington — President Trump on Wednesday applauded the latest inflation spike, saying the numbers are  “great” and “I love the inflation” because the U.S. “taking out” what he called “millions” of barrels of Iranian oil in the dead of night. The president added that he’s “just announcing today for the first time” that the U.S. is seizing Iranian oil.

Once the conflict is over, Mr. Trump said oil prices and inflation will drop rapidly. A reporter asked the president in the Oval Office Wednesday if he’s concerned that the Consumer Price Index rose at an annual rate of 4.2%, up from 3.8% in the prior month and marking the highest level since April 2023. The new inflation numbers were released earlier Wednesday.

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WASHINGTON — Spiking gas prices pushed inflation to its highest level in three years last month, a headache for the Federal Reserve and a potential political challenge for the Trump administration as midterm elections near.

Consumer prices rose 4.2% in May from a year earlier, the Labor Department said Wednesday, up from 3.8% in April and the third straight increase. On a monthly basis, prices rose 0.5% last month, after big gains of 0.6% in April and 0.9% in March.

Rising inflation has soured many Americans on the economy, as the cost of gas, groceries, and other necessities hammer many Americans financially.

Excluding the volatile food and energy categories, core prices rose 2.9% in March from a year earlier, up from 2.8% in April. On a monthly basis, core prices increased a modest 0.2%.

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Los Angeles’ hotel industry is losing jobs at its fastest pace in a decade outside of the pandemic, raising fresh concerns about the economic fallout from some of the most aggressive minimum wage mandates in the nation.

A new analysis of federal labor data found that Los Angeles County hotels and motels saw their workforce shrink by 1.7% in December 2025 compared to the same month a year earlier, as businesses grappled with rapidly rising labor costs imposed by city and county officials.

The decline comes as Los Angeles prepares to host a series of major international events, including the 2028 Summer Olympics, while hotel operators warn that mounting costs are threatening the industry’s ability to expand and meet future demand.

Wage Mandates Coincide with Sharp Employment Decline

According to an analysis by the Employment Policies Institute (EPI) of newly released U.S. Bureau of Labor Statistics data, the contraction represents the steepest year-over-year decline in Los Angeles County’s hotel industry in a decade, excluding pandemic-related disruptions.

The losses followed a series of government-mandated wage increases.

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WASHINGTON — The world is getting more uptight about lending money to President Donald Trump’s government — causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a new risk for Republicans in November’s midterm elections.

The energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government. Interest rates on a 10-year U.S. Treasury note are topping 4.44%, up from 3.95% before the war started at the end of February. Average mortgage rates have climbed to their highest levels in nine months, while auto sales are slumping.

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The national average price for regular gas continued to fall on Friday, dropping to $4.391 per gallon, a 16-cent decrease over the past week, according to AAA.

Gas prices have trended downward since setting a high for the year on May 21 at $4.564 per gallon. Moreover, fuel costs have dropped every day this week, starting at $4.507 per gallon on Monday, Memorial Day, dropping to Friday’s current price point, an 11-cent drop in less than 100 hours. The decrease in fuel costs comes at a time when gas prices start to rise, after Memorial Day and the beginning of what is recognized as the summer driving season.

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Americans are saving less money than they have in nearly four years as rising living costs strain household finances and force many families to rely increasingly on credit cards and debt to get by.

The personal saving rate dropped to 2.6 percent in April, according to new Commerce Department data, marking the lowest level since June 2022 and a steep decline from the 5.5 percent rate recorded one year earlier.

The savings rate measures the share of disposable income households set aside rather than spend.

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Inflation continued to hit consumer wallets in April, likely keeping the Federal Reserve on the sidelines until the current wave subsides, fresh pricing data released Thursday showed.

The personal consumption expenditures price index increased a seasonally adjusted 0.4% for the month, putting the 12-month inflation rate at 3.8%, the Commerce Department reported. Economists surveyed by Dow Jones had been looking for respective readings of 0.5% and 3.8%.

Excluding food and energy, core prices rose 0.2% for the month and 3.3% for the year, against estimates of 0.3% and 3.3%.

While the annual rates were in line with forecasts, the soft monthly readings could provide some hope that the burst in prices over the previous month had begun to ease.

The Fed takes in a wide dashboard of indicators, but uses the PCE measures as its prime forecasting and policy tool. Officials generally consider core a better indicator of long-term inflation trends as it excludes the volatile gas and groceries components.

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“With supplies highly constrained, if shipping through the strait does not soon return to prewar levels, world oil and natural gas consumption could need to fall more meaningfully than it has so far,” Logan said. “The economic consequences would depend on the degree to which end users can switch to other energy sources or use energy more efficiently, versus curtailing economic activity.”

 

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During a White House small business summit, President Donald Trump said the economy is strong and his policies are satisfying Americans.

“Consumer confidence is way up,” Trump said at the May 4 event.

Three standard measurements of consumer satisfaction — from the University of Michigan; a business group called the Conference Board; and an aggregation of public polling data — show the opposite. They reveal that people are less satisfied with the economy now than at the end of President Joe Biden’s tenure, and at least one of the metrics puts consumer confidence near an all-time low.

The White House pointed to retail spending data to support his statement, but that isn’t a clear-cut measure of consumer confidence when other economic factors are at play.

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Imagine an America where factories hum again, jobs return to towns long left behind, and the heartbeat of industry pulses stronger than it has in years.

Under President Donald J. Trump, that vision is becoming reality.

Democrats spent years pushing a narrative that manufacturing’s decline was inevitable, a so-called Trump Effect they blamed on him while their own policies accelerated the bleeding. Trump has ended that lie. American manufacturing is surging back, and the numbers prove it.

Republicans must recognize this triumph, especially now, as midterm season unfolds. They should defend it fiercely, for Democrats’ woke leftist base would dismantle every gain with vindictive speed if handed power again.

Manufacturing is expanding for the third straight month. Its key index posted the highest reading since 2022. New orders are rising for the third consecutive month as both American and overseas buyers seek U.S.-made products. Production has grown for five months running and is accelerating at a pace unseen before the disastrous Biden-Harris era. The Philadelphia Fed’s Manufacturing Index surged in April, beating forecasts.

The parent company of Facebook, Meta, has announced plans to lay off nearly 10% of its total workforce, 8,000 positions, starting in early May 2026. These layoffs may not be the only layoffs, as more might be announced after May of this year.

Meta Reportedly to Cut 8,000 Jobs in Upcoming Layoffs Amid AI Cost Pressures – MLQ.ai news.google.com
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Key Points

  • Meta to eliminate about 8,000 positions, roughly 10% of its global workforce of nearly 79,000, starting May 20.1
  • Cuts aim to offset costs of AI infrastructure investments and streamline operations with AI-assisted workers.1
  • Additional layoffs expected in second half of 2026, though details on scale and timing unclear.1
  • Follows earlier reports of potential cuts up to 20% of staff.1
  • Meta declined to comment on the reports.1