Trump doubles down on the economy despite sharp

President Donald Trump isn't used to fueling negativity—at least when it comes to his own performance or plans—and this time, it's jeopardizing his outlook for struggling Americans.

"Our economy was the strongest in the history of our country," Trump said of his first term in an interview with Norah O'Donnell for CBS's "60 Minutes" a week ago. "But my second term is completely demolishing it."

Two days later, voters in Virginia and New Jersey handed Republican candidates crushing defeats. These results confirmed an NBC News poll showing that a majority—nearly two-thirds—believe the president hasn't lived up to his promises to curb inflation and improve the economy. A common slogan for the Democratic candidates who won Tuesday—both progressive and centrist—was "affordability."

One need look no further than Trump's predecessor to understand the dangers facing the president. Early in his first term, President Joe Biden ignored inflation, then his administration dismissed it as a "transitory" effect of government spending during the COVID-19 pandemic, and then tried to minimize the political consequences of losing public confidence.

For Trump, who has described himself as a "fan" of the country, his handling of the issue and his affordability message are a bet that he is on the right track—and can soon prove it—even if most American voters don't yet see it that way. Biden seems to think so too.

Former House Speaker and Trump ally Newt Gingrich said, "Trump has taken a huge gamble." In an article, Gingrich said he was betting that his economic policies—including tariffs, tax cuts, and investment in America—would collectively lead to an "extraordinary boom" by next summer.

Interview. "If that's true, then 2026 will be a very good year for Republicans," Gingrich said of next year's midterm elections. "If that's not true, then 2026 will be a very difficult year for Republicans."

Like Trump, Biden argued that the broader economy was strong, even if taxpayers were suffering. And like Trump, Biden saw his party's fortunes change just a year after his election.

In July 2021, Biden said, "As our economy recovers rapidly, we've seen some price increases." "Some have expressed concern that this could be a sign of persistent inflation. But we don't believe that. Our experts believe, and the data suggests, that most of the price increases we've seen are expected to be temporary."

In November of that year, 12 months after Biden won Virginia by 10 percentage points over Trump, Republican Glenn Youngkin won the state's governorship by 2 percentage points. On Tuesday, Democratic Governor-elect Abigail Spanberger won Virginia by nearly 15 percentage points. An NBC News exit poll showed that the economy was the top issue for 48% of voters—more than double the 21% who chose healthcare as the second-most important issue.

Trump, who is privately raising millions of dollars to renovate a White House ballroom and is hosting a "Great Gatsby"-themed Halloween party amid the ongoing government shutdown, said this week that the cost of everyday living is not something he wants to discuss.

Speaking to reporters last week, he said of his predecessor, "I don't want to talk about affordability because everyone knows it's much less expensive under Trump than under 'Sleepy Joe Biden,' and prices are much lower." On Sunday, Trump continued his stance. While there were cheers, he also revived an idea he first proposed in July: sending tariff rebate checks of $2,000 per person, excluding high-income earners. Trump did not provide further details about who would be eligible in his social media post.

"Those who oppose tariffs are fools! We are now the richest and most respected country in the world, with near-zero inflation and record-breaking stock market values," he wrote. "401k balances are at an all-time high."

A senior White House official said Trump is frustrated because he feels he isn't getting the credit he deserves for his efforts to lower prices. He also believes the administration isn't doing enough to raise awareness about affordability.

It's clear that other Republicans are taking inspiration from voters. On Friday, Republican Representative Elise Stefanik put the issue of affordability at the forefront when announcing her candidacy for governor of New York. Instead of blaming Trump, with whom she is close, Stefanik targeted Democratic Governor Kathy Hochul, who is running for re-election.