Trump to speak about economy in Detroit amid investigation into US Fed chair

Danielle Kaye
New York business reporter

The latest economic
data has painted a picture of a US economy that has maintained solid momentum,
even as Trump’s trade and immigration policies leave big questions about what comes next.

Over the three
months to last September, the world’s largest economy expanded at a
better-than-expected annual rate of 4.3% – the strongest growth in two years.

And inflation data
released this morning by the Bureau of Labor Statistics showed that the pace of
price increases was relatively contained in December. Overall, consumer prices
rose 2.7% from a year ago, the same pace as November. (That figure is still above
the Federal Reserve’s 2% target.)

But economists warn
about cracks in the US economy and growing disparities.

Higher income
households are spending freely, but price increases are hitting lower and
middle income Americans particularly hard. Consumer confidence in December fell
to its lowest level in months, according to the Conference Board, as Americans
grow more anxious about their income and the weakening job market.

Uncertainty about
the Trump administration’s tariffs also continues to weigh on businesses and
investments. The Supreme Court could rule on the legality of Trump’s sweeping
global tariffs as soon as this Wednesday.