The U.S. president wields enormous power and Donald Trump has greatly expanded his executive authority over the past year. But there is one area where he is learning the limits of presidential power – his ability to quickly lower the cost of living.
As a candidate, Trump promised bold economic fixes to tackle voters’ biggest concern – high inflation. But, in office, Trump has discovered what his predecessors learned: taming prices is much harder than rhetoric suggests. Inflation is immune to the power of the presidential bully pulpit and cannot be cowed into submission through threats.
With just 10 months until pivotal congressional elections, Trump faces growing discontent over his handling of the economy and voter anger over persistent high prices could potentially shatter Republicans’ tenuous grip over Congress.
Some 36% of Americans approve of Trump’s overall handling of the economy, according to a Reuters/Ipsos poll conducted Monday and Tuesday. That is well below his initial 42% rating on the issue when he first took office last year, but up from a low of 33% in a December poll.
In recent days, the White House has scrambled to offer Americans a slew of populist economic proposals to ease cost-of-living concerns.
Trump has proposed a cap on credit card interest rates at 10%, a ban on large investors buying up family housing and a directive to government-controlled mortgage giants Fannie Mae and Freddie Mac to buy $200 billion in mortgage bonds to lower mortgage interest rates.
While Trump continues to talk up his economic achievements, economists and political strategists told Reuters the flurry of proposals signals the White House understands this is a moment of political peril.
Nevertheless, the proposals are unlikely to have a significant impact on cost of living between now and November’s congressional elections and some could even backfire, the strategists and economists warned.
“No president can wave a wand and change the economy overnight,” said Charlie Gerow, a Republican strategist. “Inflation is not coming down anywhere near as fast as President Trump or the rest of America hoped.”
