President Donald Trump delivered a politically charged speech Wednesday carried live in prime time on network television, seeking to pin the blame for economic challenges on Democrats while announcing he is sending a $1,776 bonus check to U.S. troops for Christmas.
The remarks came as the nation is preparing to settle down to celebrate the holidays, yet Trump was focused more on divisions within the country than a sense of unity. His speech was a rehash of his recent messaging that has so far been unable to calm public anxiety about the cost of groceries, housing, utilities and other basic goods.
Trump has promised an economic boom, yet inflation has stayed elevated and the job market has weakened sharply in the wake of his import taxes. Trump suggested that his tariffs — which are partly responsible for boosting consumer prices — would fund a new “warrior dividend” for 1.45 million military members, a payment that could ease some of the financial strains for many households. The amount of $1,776 was a reference to next year’s 250th anniversary of the signing of the Declaration of Independence.
“The checks are already on the way,” he said of the expenditure, which would total roughly $2.6 billion.
Presidential addresses to the nation carried on network television are traditionally less partisan than rally speeches, but Trump gave a condensed version of his usual political remarks.
Flanked by two Christmas trees with a portrait of George Washington behind him in the White House’s Diplomatic Reception Room, Trump sought to pin any worries about the economy on his predecessor, Joe Biden.
“Eleven months ago, I inherited a mess, and I’m fixing it,” Trump said. “We’re poised for an economic boom, the likes of which the world has never seen.”
Trump seeking to stop the slump in his approval ratings
His holiday wishes came at a crucial time as he tries to rebuild his steadily eroding popularity. Public polling shows most U.S. adults are frustrated with his handling of the economy as inflation picked up after his tariffs raised prices and hiring slowed.
In 2026, Trump and his party face a referendum on their leadership as the nation heads into the midterm elections that will decide control of the House and the Senate.
The White House remarks were a chance for Trump to try to regain some momentum after Republican losses in this year’s elections raised questions about the durability of his coalition. He openly leaned into the politics despite television networks’ past reluctance to broadcast presidential addresses loaded with campaign-style rhetoric.
For example, in September 2022, networks declined to give the Biden White House a prime-time slot for a speech the then-president gave about democracy because it was viewed as too political.
Trump spoke at a rapid-fire clip with a tone that bordered at times on anger. He responded to the public frustration this year over the economy by making even bolder promises on growth next year, saying that mortgage rates would be coming down and that he “would announce some of the most aggressive housing reform plans in American history.”
Trump brought charts with him to make the case that the economy is on an upward trajectory. He made claims about incomes growing, inflation easing and investment dollars pouring into the country as foreign leaders, he claimed, have assured him that “we’re the hottest country anywhere in the world,” a statement he has frequently repeated at public events.
If the argument seemed familiar, that’s because it has echoes of the case that Biden made about the U.S. economy with little success. He, too, in the face of inflation pointed to the enviable rate of U.S. economic growth compared to other nations.
The public sees the economy differently from Trump
The hard math internalized by the public paints a more complicated picture of an economy that has some stability but few reasons to inspire much public confidence.
The stock market is up, gasoline prices are down and tech companies are placing large bets on the development of artificial intelligence.
But inflation that had been descending after spiking to a four-decade high in 2022 under Biden has reaccelerated after Trump announced his tariffs in April.
The consumer price index is increasing at an annual rate of 3%, up from 2.3% in April.
The affordability squeeze is also coming from a softening job market. Monthly job gains have averaged a paltry 17,000 since April’s “Liberation Day,” when Trump announced import taxes that he later suspended and then readjusted several months later.
The unemployment rate has climbed from 4% in January to 4.6%.
Trump said that investment commitments for new factories will boost manufacturing jobs and that consumer activity will improve dramatically as people receive increased tax refunds next year.
While emphasizing the economy, he also faces challenges on other policy fronts.
Trump’s mass deportations of immigrants have proved unpopular even as he is viewed favorably for halting crossings along the U.S. border with Mexico. The public has generally been unmoved by his globe-trotting efforts to end conflicts and his attacks on suspected drug boats near Venezuela.
Trump sought to blame Democrats for the likely increase in health insurance premiums as the subsidies tied to the 2010 Affordable Care Act are expiring. Democratic lawmakers and some Republicans have sought to address that issue, but Trump has pushed back and suggested instead that payments should go directly to the buyers of health insurance instead of the companies. The president has yet to commit to a specific legislative fix.
After his speech ended and the video was no longer being broadcast, Trump turned to his gathered aides and asked them how his address to the nation went. The aides assured him it was great.
Trump then indicated that White House chief of staff Susie Wiles had told him he needed to address the nation. After some back and forth, he asked Wiles how he had done.
“I told you 20 minutes and you were 20 minutes on the dot,” Wiles said.
President Donald Trump’s glowing account of progress under his watch Wednesday was out of tune with the experience of price-squeezed Americans and the story told by some of his government’s own statistics.
In a speech from the White House, Trump assailed the record of his Democratic predecessor and boasted expansively about his record so far. Not all of those boasts were credible.
Among them:
On inflation
TRUMP: He blamed Democrats for handing him an “inflation disaster,” “the worst in the history of our country,” and said that now, the prices of turkey and eggs have come down and “everything else is falling rapidly. And it’s not done yet. But boy, are we making progress.”
THE FACTS: His claim that prices are falling rapidly is not seen in the inflation numbers, which are about where they were when he took office, after having fallen significantly before the end of Joe Biden’s presidency. Nor is it true that the Biden era gave the country its worst inflation ever.
The consumer price index was 3% in September, the same rate as in January, a tick up from 2.9% in December, Biden’s last full month in office. In an AP-NORC poll this month, the vast majority of U.S. adults said they’ve noticed higher than usual prices for groceries, electricity and holiday gifts in recent months.
Inflation had been falling during the first few months of Trump’s presidency, but it picked back up after the president announced his tariffs in April.
On investment
TRUMP: “I secured a record-breaking $18 trillion of investment into the United States.”
THE FACTS: Trump has presented no evidence that he’s secured this much domestic or foreign investment for the United States. Based on statements from various companies, foreign countries and the White House’s own website, that figure appears to be exaggerated, highly speculative and far higher than the actual sum.
Even the White House website offers a far lower number, $9.6 trillion, and that figure appears to include some investment commitments made during Biden’s presidency.
Trump has routinely claimed rosy investment numbers, without offering the details to support them. Trump nailed down some of the investment terms in an October trip to Japan and South Korea, but they’re over multiple years and it remains to be seen how ironclad those commitments and others will be.
A landslide?
TRUMP: “I was elected in a landslide, winning the popular vote and all seven swing states and everything else, with a mandate to take on a sick and corrupt system.”
THE FACTS: Trump won a decisive victory but hardly a landslide one, however you define a landslide. Trump, who became president with 312 electoral votes, won fewer than Democrats Barack Obama in 2008 (365) and 2012 (332) and Bill Clinton in 1992 (370) and 1996 (379).
The electoral performance of those men pales in comparison with the sweeps by Franklin Roosevelt in 1936 (523), Lyndon Johnson in 1964 (486), Richard Nixon in 1972 (520) and Ronald Reagan (525) in 1984.
Trump did win more popular votes than his Democratic opponent, Kamala Harris, but not quite a majority of them. His win in 2024 ranks among the more narrow.
TRUMP GETS POOR MARKS ON ECONOMY
