Trump defends economic record in Detroit as affordability concerns surge ahead of 2026 midterms
President Donald Trump will address the Detroit Economic Club on Tuesday as part of his push to promote his economic policies ahead of the 2026 midterms. The visit comes amid growing public concern over rising living costs, with 64% of Americans calling affordability a 'very serious problem'.
Inflation remained unchanged at 2.7% in December, staying above the Federal Reserve’s target. Despite this, Trump has highlighted recent drops in gasoline prices and mortgage rates—now at 5.7%, down from nearly 8% under the previous administration—as proof his 'America First' agenda is working. Yet critics point to weak job growth, higher food and electricity costs, and ongoing uncertainty from his tariff policies.
Trump has rolled out new economic measures, including a ban on large investors buying single-family homes and a one-year 10% cap on credit card interest rates, set to begin January 20, 2026. He argues current rates between 20-30% are unfair, calling them a form of cheating. The president has also pressured Federal Reserve Chairman Jerome Powell to cut rates, publicly criticising him as 'too-late Powell'. Powell is now facing a Justice Department criminal investigation over his testimony regarding the central bank’s headquarters renovation. Recent off-year elections showed voters prioritising affordability, with nearly half believing the economy is worsening. Polls reflect dissatisfaction: 57% disapprove of Trump’s economic management, and even some within his own party argue he hasn’t done enough to tackle high living costs. Meanwhile, manufacturing jobs continue to decline, undermining his 2016 campaign promise to revive the sector.
Trump’s Michigan speech aims to rally support for his economic record before the midterms. But with mixed expert reactions, public scepticism, and lingering concerns over growth and prices, the effectiveness of his policies remains under scrutiny. The Fed’s next moves—and the outcome of Powell’s investigation—could further shape the economic debate in the coming months.
