A day after the Republican Party suffered major losses in state and local races, Trump appeared upbeat at a rally in downtown Miami, Florida, on November 5.
“We have the greatest economy ever. Many people just don’t see it yet,” he told an audience of business executives, investors, and guests including his son-in-law Jared Kushner, special envoy Steve Witkoff, and Saudi ambassador to the U.S. Princess Reema Bandar.
Trump praised the record-breaking stock market, strong growth, and the rise of “AI skyscrapers” across the country. He also insisted that “prices are falling very rapidly,” even though the Consumer Price Index rose 3% year-over-year in September—similar to the rate when he took office in January.
“I’ve told Republicans that if they want to win elections, they must emphasize these facts,” Trump said.
Despite his confident tone, results in New York, New Jersey, and Virginia told a different story. Concerns over the cost of living helped Democrats like Zohran Mamdani, Abigail Spanberger, and Mikie Sherrill win decisive victories over Republican rivals. The GOP’s setbacks underscored the pressure on Trump to fulfill his promises to tame inflation and make life more affordable for Americans.
“The key lesson of 2025, just like 2024, is that affordability remains top of mind for voters,” said Kevin Madden, senior partner at the Washington-based consulting firm Penta Group. “After a brief moment of optimism when Trump won the election, economic pessimism has returned.”
White House officials insist the president remains focused on the economy. Yet his agenda is crowded with other priorities — from immigration and crime to trade negotiations, peace efforts in Gaza and Ukraine, and a $20 billion bailout plan for Argentina.
“We need to stay focused on the home front,” Vice President JD Vance wrote on X on November 5. “We’ll keep working to ensure Americans can afford a decent life — that will be the measure of our success in 2026 and beyond.”
Democrats, however, appear to have tapped into voter frustration over rising living costs, using it to gain momentum against Trump and the GOP.
“People are struggling financially. Democrats are promising to address those core concerns — and they’re doing it well,” said Julian Zelizer, a political historian at Princeton University.
Reports suggesting that Democrats have better answers to inflation have angered Trump.
“When I took over, everything was a mess — I brought inflation way down, below normal levels,” he told Fox News on November 5.
In reality, U.S. inflation remains at 3%, above the Federal Reserve’s 2% target, squeezing lower- and middle-income households. According to the American Automobile Association, the average price of gasoline is $3.08 per gallon — only three cents lower than a year ago.
Trump has recently focused on cutting prices of specific goods, unveiling a plan on November 6 to lower obesity drug costs and vowing to rein in beef prices. He has also urged the Federal Reserve to keep reducing mortgage rates, which have fallen from 7% in January to 6.2% for 30-year fixed loans.
But analysts warn that Trump risks falling into the same political trap over inflation that ensnared former President Joe Biden, whose assurances that “prices are coming down” failed to convince voters in last year’s election.
Critics argue that Trump’s message of affordability rings hollow while he continues building a massive White House ballroom and hosting lavish “Great Gatsby”-themed parties at Mar-a-Lago during a government shutdown that left millions at risk of losing food assistance.
“The President can build all the fancy ballrooms he wants, but what people care about is how much they’re paying for coffee or beef at the grocery store,” said Democratic Senator Amy Klobuchar on MSNBC.
Whether Trump will change course under mounting pressure remains unclear. His post-election schedule remains packed with diplomatic meetings — a dinner with Central Asian leaders on November 6, a meeting with Hungarian Prime Minister Viktor Orbán on November 7, and a historic visit from Syrian leader Ahmed al-Sharaa, the first in decades.
Still, signs of a shift are emerging. Representative Marjorie Taylor Greene, a vocal Republican critic of the administration, said she’s noticed a change in tone.
“I just spoke with Vice President Vance, and I’m glad to hear the President is refocusing on domestic policy. In my view, that should be our only priority — America first!”