Twenty months into Donald Trump’s second term, his economic policy, MAGAnomics, is facing the same criticisms as the Bidenomics it promised to replace. Aggregate indicators remain positive: 2.2% second-quarter growth, 3.4% headline inflation and 4.2% unemployment. However, mortgage rates have topped 7%, existing home sales fell below 4 million units, and households continue to suffer from the aftermath of past price surges. Treasury Secretary Scott Bessent and National Economic Council director Kevin Hassett both acknowledge the gap between favorable aggregate numbers and Americans’ real lived experience, exactly the same political bind Trump had exploited against Biden. The administration also bet on AI as a central economic argument, but productivity data shows no measurable impact so far.
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