Inflation

British Chancellor Rachel Reeves announced the latest budget on Wednesday, setting out sweeping tax hikes which are projected to raise 26.1 billion pounds ($34.4bn) for the public purse by 2030.

The budget had been highly anticipated as a “make or break” moment for the UK’s governing Labour party, which has grappled with poor polling over the past year. Earlier this year, an opinion poll by YouGov found that if an election were to be held now, the far-right Reform UK Party, which takes a hard line on immigration, would come to power.

In an embarrassing turn, the country’s Office for Budget Responsibility (OBR) published its economic outlook as a result of the budget on its website two hours before the announcement – something it never normally does until afterwards. Reeves called the blunder “deeply disappointing” and a “serious error”.

Reeves acknowledged that the tax rises – to be paid in large part by freezing existing income tax thresholds, meaning more people will pay higher tax as their incomes rise with inflation – would adversely affect working people. This breaks a key pledge Labour made in its manifesto before last year’s general election.

“We are asking everyone to make a contribution,” Reeves told parliament.

However, she said the tax rises would help pay for nearly 22 billion pounds ($28.9bn) in fiscal headroom within five years. Reeves also said government borrowing would fall each year. Borrowing in 2025-26 is expected to be 138.3bn pounds ($183bn), falling to 112.1 billion pounds ($148.3bn) the year after and to 67.2 billion pounds ($88.9bn) by 2031.

While the UK’s budget deficit is forecast at 28.8 billion pounds for the financial year 2026/2027, Reeves said this would move to surplus in 2028 and forecast a 24.6 billion pound ($32.55) surplus for 2030/2031.

That will pay for welfare spending and means there “will be no return to austerity measures”, Reeves said.

“I said there would be no return to austerity, and I meant it. This budget will maintain our investment in our economy and our National Health Service. I said I would cut the cost of living, and I meant it. This budget will bring down inflation and provide immediate relief for families. I said that I would cut debt and borrowing, and I meant it,” Reeves said.

Here are five key takeaways from this budget.

1. Labour broke its promise not to raise taxes for working people

Reeves raised taxes by about 40 billion pounds ($52.6bn) in last year’s budget – the biggest hike in revenue-raising measures in decades – in what she said would be a one-off needed to put the government’s finances on an even keel.

This time around, while she did not increase income tax or National Insurance Contributions for working people, she did extend a freeze on the income thresholds at which tax must be paid.

This means that more people will be dragged into higher tax brackets as their income rises with inflation. The move will pull 780,000 more people into paying basic-rate income tax for the first time by the 2029-2030 fiscal year along with 920,000 more higher-rate taxpayers and 4,000 additional-rate payers.

“This ‘fiscal drag’ means that hundreds of thousands will start paying income tax for the first time, and all existing taxpayers will face higher liabilities,” Irem Guceri, associate professor of economics and public policy at Oxford University’s Blavatnik School of Government, said.

The previous Conservative government had already frozen these thresholds until 2028. Reeves, who was highly critical of that action at the time – saying it hurt working people – now plans to extend that to 2031.

“I know that maintaining these thresholds is a decision that will affect working people,” she said. “I said that last year, and I won’t pretend otherwise now.”

“I can confirm that I will not be increasing National Insurance, the basic, higher or additional rates of income tax or VAT [value added tax]”, the chancellor added.

Reeves said she will also target wealthier people via a “mansion tax” on those who own property worth more than 2 million pounds ($2.65m) and is reducing the amount of tax relief some higher earners can obtain on pension contributions. She also announced a 2 percentage point increase in tax rates on rental income, dividends and capital gains.

Nigel Green, chief executive of the financial advice firm DeVere, said these moves will have wider “behavioural impacts”. “People make long-term decisions about where to work, where to build wealth and where to retire,” he said.

“When rules around pensions tighten sharply, it undermines confidence in the broader system. Wealth moves where governments show stability over decades, not sudden extractions,” he added.

Following the announcement, Kemi Badenoch, leader of the opposition Conservative party, described Reeves decision to raise taxes, despite promising not to do so again, as “a total humiliation”.

2. Labour will spend money on welfare

One of the highly anticipated announcements of the budget was the scrapping of the two-child benefit cap from April 2026. Currently, parents can only claim special tax credits worth about 3,455 pounds ($4,571) per child for their first two children. The cap was imposed by the previous Conservative government. Reeves said this would lift thousands of children out of poverty.

“The removal of the two-child limit in child benefit is likely to provide significant support to families currently living in poverty,” Guceri said.

Experts said the move would appeal strongly to Labour Party backbenchers. “The two-child benefit cap is widely despised among rebellious Labour MPs as a major contributor to child poverty,” said Colm Murphy, senior lecturer in British politics at Queen Mary University, London. “Repeal was critical for Reeves to have any chance of political survival.”

Gregory Thwaites, research director at Resolution Foundation (RF), a British think tank that focuses on improving living standards, also said the move was a positive step towards reducing child poverty in the UK.

“That’s something that we’ve been campaigning for RF for some time, and we’re very pleased to see that. And then there are some welcome reforms to the tax system, as well. So, for example, charging the people who own very expensive properties a bit more money that will, that’s very welcome, as well,” Thwaites told Al Jazeera.

“Ultimately, budgetary responsibility should not just be seen in terms of fiscal balance but also measures of broader wellbeing,” said professor Jasper Kenter, professorial research fellow at Aberystwyth Business School. “Lifting the two-child benefit cap is important in this regard.”

GMB workers’ union General Secretary Gary Smith welcomed Reeves’s decision to tax wealth and to increase welfare spending, calling this budget the “final nail in the coffin for the Conservatives’ failed austerity project”.

“Key public services, essential national infrastructure, and communities across the UK suffered deep wounds because the Tories made the wrong economic choices – we must never go back to those dark days,” a statement from Smith read.

“The challenge for Labour is to grip the task of rebuilding our economy and country, lock in essential investment to create growth, and start bringing a bit of hope to people,” the statement added.

3. UK’s hated ‘rape clause’ will be scrapped

Reeves said she would scrap the so-called “rape clause”, which exempts women from the two-child benefit cap policy if they can prove their child was conceived non-consensually.

She described the exemption requirement as “vile, grotesque, dehumanising, cruel”.

“I’m proud to be Britain’s first female chancellor,” Reeves told parliament. “I take the responsibilities that come with that seriously. I will not tolerate the grotesque indignity to women of the rape clause any longer.”

4. Slower-than-expected economic growth forecast

In response to the budget, the OBR upgraded its forecast for economic growth for this year from 1 percent to 1.5 percent.

However, it downgraded economic growth for the following four years. GDP growth in 2026 is now expected to be 1.4 percent (down from 1.9 percent), while the OBR has downgraded its forecast for each of 2027, 2028 and 2029 to 1.5 percent (down from approximately 1.8 percent).

Much of the downgrade stems from lower expectations for productivity growth. Reeves insisted the sluggish outlook was the legacy of the previous Conservative government, however.

Reeves also announced a freeze on fuel duty and rail fares, as well as support with energy bills, causing the OBR to revise inflation down by 0.4 percentage points for next year, Guceri said. However, the OBR revised up its forecast for this year to 3.5 percent, “reflecting stronger real wage growth and persistent food price pressures”, she added.

5. The pound and financial markets responded positively

Sterling rose by 0.3 percent against the dollar to $1.3213 just in advance of the budget announcement, before settling back to roughly where it started by the end of it.

London’s blue-chip FTSE index and the FTSE 250 index rose by about 0.6 percent each in the wake of the budget.

“So far, markets showed little reaction to the Budget – something the Chancellor will view as a success,” Guceri said.

A sluggish job market lowers consumer confidence but may also lead to another rate cut from the Federal Reserve by the end of the year.

United States consumer confidence sagged in November as households worried about jobs and their financial situation, likely in part because of the recently ended government shutdown.

The Conference Board said on Tuesday its consumer confidence index dropped to 88.7 this month, from an upwardly revised 95.5 in October, hitting its lowest level since April.

Economists polled by the Reuters news agency had forecast the index edging down to 93.4 from the previously reported 94.6 in October.

“Consumers’ write-in responses pertaining to factors affecting the economy continued to be led by references to prices and inflation, tariffs and trade, and politics with increased mentions of the federal government shutdown,” said Dana Peterson, chief economist at the Conference Board.

“Mentions of the labour market eased somewhat but still stood out among all other frequent themes not already cited. The overall tone from November write-ins was slightly more negative than in October.”

Consumer confidence remained low among all income brackets. While confidence among those who make less than $15,000 annually ticked up slightly, it still remained the group with the lowest consumer confidence.

The consumer confidence report was released amid a slowing labour market. The September jobs report, released late last week, showed 119,000 jobs were added to the US economy as the unemployment rate ticked up 0.1 of a percentage point to 4.4 percent.

However, there is limited economic data available to fully gauge the sentiment of the US economy because the government shutdown, the longest in US history, hindered federal agencies’ ability to gather the data needed to assess current conditions.

“More worries about what lies ahead … hence, putting purchases for major items on hold,” Jennifer Lee, senior economist at BMO, wrote to Reuters.

The economic data followed dovish comments from policymakers in the past few days that helped cement rate cut expectations.

On Monday, Federal Reserve Governor Christopher Waller said the job market was weak enough to warrant another quarter-point rate cut in December although action beyond that depended on a flood of data that was delayed by the federal government shutdown.

The United States Bureau of Labor Statistics (BLS) has announced it will not release inflation information for the month of October, citing the consequences of the recent government shutdown.

On Friday, the bureau updated its website to say that certain October data would not be available, even now that government funding has been restored and normal operations have resumed.

“BLS could not collect October 2025 reference period survey data due to a lapse in appropriations,” it wrote in a statement. “BLS is unable to retroactively collect these data.”

The cancelled data includes the Consumer Price Index (CPI) — a report that is commonly used to calculate inflation by measuring the changing costs of retail items — and the Real Earnings summary, which tracks wages among US workers.

For some of the reports, including the Consumer Price Index, the bureau said it would use “nonsurvey data sources” to make calculations that would be included in a future report for the month of November.

The November Consumer Price Index will also be published later than anticipated, on December 18.

The most recent government shutdown was the longest in US history, spanning nearly 43 days.

It began on October 1, after the US Congress missed a September 30 deadline to pass legislation to keep the government funded.

Republicans had hoped to push through a continuing resolution that made no changes to current spending levels. But Democrats had baulked at the prospect, arguing that recent restrictions to government programmes had put healthcare out of reach for some US citizens.

They also warned that insurance subsidies under the Affordable Care Act are set to expire by the end of the year. Without an extension to those subsidies, they said that insurance premiums for many Americans will spike.

Republicans rejected the prospect of negotiating the issue until after their continuing resolution was passed. Democrats, meanwhile, feared that, if they passed the continuing resolution without changes, there would be no further opportunity to address healthcare spending before the end of the year.

The two parties hit an impasse as a result. Non-essential government functions were halted during the shutdown, and many federal employees were furloughed.

Only on November 10 did a breakthrough begin to emerge. Late that night, seven Democrats and one independent broke from their caucus to side with Republicans and pass a budget bill to fund the government through January 30.

The bill was then approved by the House of Representatives on November 12, by a vote of 222 to 209. President Donald Trump signed the legislation into law that very same day.

Trump had openly sought to leverage the shutdown to eliminate federal programmes he saw as benefitting Democratic strongholds.

He also attempted to blame the political left for the lapse in government services, though he acknowledged public frustration with Republicans after Democrats won key elections in November.

“If you read the pollsters, the shutdown was a big factor, negative for the Republicans,” he told a breakfast for Republican senators on November 5. “That was a big factor.”

The Trump administration had warned as early as October that the month’s consumer price data would be negatively affected as a result of the shutdown.

In a White House statement, Trump officials touted Trump’s economic record while slamming a potential lapse in the government’s collection of data. Once again, they angled the blame for any slowed economic growth at the Democrats.

“Unfortunately, the Democrat Shutdown risks grinding that progress to a halt,” the statement said.

“Because surveyors cannot deploy to the field, the White House has learned there will likely NOT be an inflation release next month for the first time in history — depriving policymakers and markets of critical data and risking economic calamity.”

September’s Consumer Price Index, the most recent available, showed that inflation across all retail items rose about 3 percent over the previous 12-month period.

For food alone, inflation for that period was estimated at 3.1 percent.

United States job growth accelerated in September despite a cooling job market as the unemployment rate rose.

Nonfarm payrolls grew by 119,000 jobs after a downwardly revised 4,000 drop in August, according to the Bureau of Labor Statistics (BLS) report released on Thursday.

The unemployment rate rose to 4.4 percent, up from 4.3 percent in August.

The healthcare sector had the most gains, totalling 43,000 jobs in September. Food and beverage services sectors followed, adding 37,000 jobs, and social assistance employment grew by 14,000.

Other sectors saw little change, including construction, wholesale trade, retail services, as well as professional and business services.

The federal workforce saw a decline of 3,000, marking 97,000 jobs cut from the nation’s largest employer since the beginning of the year. Transportation and warehousing, an industry hit hard by tariffs, also saw declines and shed 25,000 jobs in September.

Average wages grew by 0.2 percent, or 9 cents, to $36.67.

Government shutdown hurdles

The September jobs report was initially slated for release on October 3, but was pushed out because of the US government shutdown. The jobs report typically comes out on the first Friday of each month. Because of the 43-day-long shutdown, the US Labor Department was unable to collect the data needed to calculate the unemployment rate for the month of October.

Nonfarm payrolls for the month of October will be released as part of the November employment report, which is slated to be released on December 16.

Heading into the economic data blackout, the BLS had estimated that about 911,000 fewer jobs were created in the 12 months through March than previously reported. A drop in the number of migrant workers coming into the US in search of work – a trend which started during the final year of former US President Joe Biden’s term and accelerated under President Donald Trump’s administration – has depleted labour supply.

“Today’s delayed report shows troubling signs below the topline number: the underlying labour market remains weak, leaving working Americans with shrinking opportunities and rising insecurity. Month after month, the Trump economy is producing fewer jobs, more instability, and fewer pathways for families trying to get ahead,” Alex Jacquez, chief of policy for the economic think tank the Groundwork Collaborative, said in a statement provided to Al Jazeera.

Economists estimate the economy now only needs to create between 30,000 and 50,000 jobs per month to keep up with growth in the working-age population, down from about 150,000 in 2024.

Behind the stalling growth

The rising popularity of artificial intelligence is also eroding demand for labour, with most of the hits landing on entry-level positions in white collar jobs, and locking recent college graduates out of work. Economists said AI was fueling jobless economic growth.

Others blamed the Trump administration’s trade policy for creating an uncertain economic environment that had hamstrung the ability of businesses, especially small enterprises, to hire.

The US Supreme Court earlier this month heard arguments about the legality of Trump’s import duties, with justices raising doubts about his authority to impose tariffs under the 1977 International Emergency Economic Powers Act.

Despite payrolls remaining positive, some sectors and industries are shedding jobs. Some economists believed the September employment report could still influence the Federal Reserve’s December 9-10 policy meeting on interest rate decisions.

US central bank officials will not have November’s report in hand at that meeting, as the release date has been pushed to December 16 from December 5. Minutes of the Fed’s October 28-29 meeting published on Wednesday showed many policymakers cautioned that lowering borrowing costs further could risk undermining the fight to quell inflation.

US president defends economic policies as polls show growing angst among voters over prices.

United States President Donald Trump has defended his administration’s record on lowering prices as he faces growing discontent from Americans over the cost of living.

In a speech to McDonald’s franchise owners and suppliers on Monday, Trump claimed credit for bringing inflation back to “normal” levels while pledging to bring price growth lower still.

“We have it down to a low level, but we’re going to get it a little bit lower,” Trump said.

“We want perfection.”

Returning to his regular talking point that Democrats had mismanaged the economy, the Republican president blamed cost pressures on former US President Joe Biden and insisted Americans were “so damn lucky” he won the 2024 election.

“Nobody has done what we’ve done in terms of pricing. We took over a mess,” Trump said.

Trump, whose 2024 presidential campaign focused heavily on the cost of living, has struggled to win over Americans with his protectionist economic message amid persistent affordability concerns.

In an NBC News poll released this month, 66 percent of respondents said Trump had fallen short of their expectations on affordability, while 63 percent answered the same for the economy in general.

Voter angst over prices has been widely identified as a key reason Republicans suffered a shellacking in off-year elections held early this month in multiple states, including New Jersey and Virginia.

Despite repeatedly playing down the effects of his tariffs on prices, Trump on Friday signed an executive order lowering duties on 200 food products, including beef, bananas, coffee and orange juice.

Trump has also floated tariff-funded $2,000 rebate cheques and the introduction of 50-year mortgages as part of a push to address affordability concerns.

While inflation has markedly declined since hitting a four-decade high of 9.1 percent under Biden, it remains significantly above the Federal Reserve’s 2 percent target.

The inflation rate rose to 3 percent in October, the first time it hit the 3 percent mark since January, although many analysts had expected a higher figure due to Trump’s trade salvoes.

Trump, who is well known for his love of McDonald’s, spent a considerable portion of Monday’s speech praising the fast-food chain and casting the company as emblematic of his economic agenda.

“Together we are fighting for an economy where everybody can win, from the cashier starting her first job to a franchisee opening their first location to the young family in a drive-through line,” he said.

Trump also offered “special thanks” to the fast-food giant for rolling out more affordable menu options, including the reintroduction of extra value meals, which were phased out in 2018 and are priced at $5 or $8.

“We’re getting prices down for this country, and there’s no better leader or advocate than McDonald’s,” he said.

WASHINGTON — President Trump’s problems with fixing the high cost of living might be giving voters a feeling of deja vu.

Just like the president who came before him, Trump is trying to sell the country on his plans to create factory jobs. The Republican says he wants to lower prescription drug costs, as did Democratic President Biden. Both tried to shame companies for price increases.

Trump is even leaning on a message that echoes Biden’s assertions in 2021 that elevated inflation is a “transitory” problem that will soon vanish.

“We’re going to be hitting 1.5% pretty soon,” Trump told reporters Monday. ”It’s all coming down.”

Even as Trump keeps saying an economic boom is around the corner, there are signs that he has already exhausted voters’ patience as his campaign promises to quickly fix inflation have gone unfulfilled.

Voter frustration

Voters in this month’s elections swung hard to Democrats over concerns about affordability. That has left Trump, who dismisses his weak polling on the economy as fake, floating half-formed ideas to ease financial pressures.

He is promising a $2,000 rebate on his tariffs and said he may offer 50-year mortgages — 20 years longer than any available now — to reduce the size of monthly payments. On Friday, Trump scrapped his tariffs on beef, coffee, tea, fruit juice, cocoa, spices, bananas, oranges, tomatoes and certain fertilizers, acknowledging that they “may, in some cases,” have contributed to higher prices.

But those are largely “gimmicky” moves unlikely to move the needle much on inflation, said Bharat Ramamurti, a former deputy director of Biden’s National Economic Council.

“They’re in this very tough position where they’ve developed a reputation for not caring enough about costs, where the tools they have available to them are unlikely to be able to help people in the short term,” Ramamurti said.

Ramamurti said the Biden administration learned the hard way that voters are not appeased by a president saying his policies would ultimately cause their incomes to rise.

“That argument does not resonate,” he said. “Take it from me.”

Biden on inflation

Biden inherited an economy trying to rebound from the COVID-19 pandemic emergency, which had shut down schools and offices, causing mass layoffs and historic levels of government borrowing. In March 2021, he signed into law a $1.9-trillion relief package. Critics said it was excessive and could cause prices to rise.

As the economy reopened, there were shortages of computer chips, kitchen appliances, autos and even furniture. Cargo ships were stuck waiting to dock at ports, creating supply chain issues. Russia’s invasion of Ukraine in early 2022 pushed up energy and food costs, and consumer prices reached a four-decade high that June. The Federal Reserve raised its benchmark interest rates to cool inflation.

Biden tried to convince Americans that the economy was strong. “Bidenomics is working,” he said in a 2023 speech. “Today, the U.S. has had the highest economic growth rate, leading the world economies since the pandemic.”

Though many economic indicators compared with those of other nations at the time largely supported his assertions, his arguments did little to sway voters. Only 36% of U.S. adults in August 2023 approved of his handling of the economy, according to a poll at the time by the Associated Press-NORC Center for Public Affairs Research.

Trump on inflation

Republicans made the case that Biden’s policies made inflation worse. Democrats are using that same framing against Trump today.

Here is their argument: Trump’s tariffs are getting passed along to consumers in the form of higher prices; his cancellation of clean energy projects means there will be fewer new sources of electricity as utility bills climb; his mass deportations made it costlier for the immigrant-heavy construction sector to build houses.

Former Biden administration officials note that Trump came into office in January with strong economic growth, a solid job market and inflation declining close to historic levels, only for him to reverse those trends.

“It’s striking how many Americans are aware of his trade policy and rightly blame the turnaround in prices on that erratic policy,” said Gene Sperling, a senior Biden advisor who also led the National Economic Council in the Obama and Clinton administrations.

“He is in a tough trap of his own doing — and it’s not likely to get easier,” Sperling said.

Consumer prices had been increasing at an annual rate of 2.3% in April when Trump launched his tariffs, and that rate accelerated to 3% in September.

The inflationary surge has been less than what voters endured under Biden, but the political fallout so far appears to be similar: 67% of U.S. adults disapprove of Trump’s performance, according to November polling data from AP-NORC.

“In both instances, the president caused a nontrivial share of the inflation,” said Michael Strain, director of economic policy studies at the American Enterprise Institute, a center-right think tank. “I think President Biden didn’t take this concern seriously enough in his first few months in office and President Trump isn’t taking this concern seriously enough right now.”

Strain noted that the two presidents have even responded to the challenge in “weirdly, eerily similar ways” by playing down inflation as a problem, pointing to other economic indicators and looking to address concerns by issuing government checks.

White House strategies

Trump administration officials have made the case that their mix of income tax cuts, foreign investment frameworks tied to tariffs and changes in enforcing regulations will lead to more factories and jobs. All of that, they say, could increase the supply of goods and services and reduce the forces driving inflation.

“The policies that we’re pursuing right now are increasing supply,” Kevin Hassett, director of Trump’s National Economic Council, told the Economic Club of Washington on Wednesday.

The Fed has cut its benchmark interest rates, which could increase the supply of money in the economy for investment. But the central bank has done so because of a weakening job market despite inflation being above its 2% target, and there are concerns that rate cuts of the size Trump wants could fuel more inflation.

Time might not be on Trump’s side

It takes time for consumer sentiment to improve after the inflation rate drops, according to research done by Ryan Cummings, an economist who worked on Biden’s Council of Economic Advisers.

His read of the University of Michigan’s index of consumer sentiment is that the effects of the post-pandemic rise in inflation are no longer a driving factor. These days, voters are frustrated because Trump had primed them to believe he could lower grocery prices and other expenses, but has failed to deliver.

“When it comes to structural affordability issues — housing, child care, education and healthcare — Trump has pushed in the wrong direction in each one,” said Cummings, who is now chief of staff at the Stanford Institute for Economic Policy Research.

He said Trump’s best chance of beating inflation now might be “if he gets a very lucky break on commodity prices” through a bumper harvest worldwide and oil production continuing to run ahead of demand.

For now, Trump has decided to continue to rely on attacking Biden for anything that has gone wrong in the economy, as he did last week in an interview with Fox News’ “The Ingraham Angle.”

“The problem was that Biden did this,” Trump said.

Boak writes for the Associated Press.

Republicans are licking their wounds after Tuesday’s ballot box defeats. But there is a lesson to be learned here. The various elections in New York City, New Jersey and Virginia, viewed collectively, reminded us yet again of a perennial political truth: Americans still care first and foremost about their wallets.

Culture war-type issues often generate the most salacious headlines — and many of the Trump administration’s fights on these fronts, such as immigration enforcement and higher education reform, are just and necessary. Still, the economy remains the top political issue. Unless Republicans get more serious about advancing an actionable economic agenda to provide real relief to middle- and working-class Americans, the party risks losing even more ground in next year’s midterm elections.

When voters went to the polls in New York City, New Jersey and Virginia, they were often asking the simplest, most urgent questions: Can I pay the rent? Can I fill up my truck at the pump? Can I fill the fridge? Will my job still exist next year? Do I have reliable healthcare for my children? Across too many districts and communities, those answers remain uneasy. Inflation, while well down from its Biden-era peak, is still stubbornly higher than the Fed’s 2% target. Purchasing power is still eroded, and cost-of-living anxieties persist for far too many.

For Republicans, this is both a warning and an opportunity. Despite a concerted effort in recent years to rebrand as the party of the common man, including but hardly limited to Teamsters President Sean O’Brien getting a coveted speaking slot at last year’s Republican National Convention in Milwaukee, too many voters still associate the GOP with tax cuts for the donor class and a general indifference toward the tens of millions of Americans who live paycheck to paycheck. That’s the blunt truth. The perception of corruption in some of the highest corridors of power in Washington, especially when it comes to the influence wielded by the über-wealthy emirate of Qatar, doesn’t exactly assuage voters’ concerns.

If the GOP wants to regain the public’s trust, it must present a compelling vision of what a sound conservative economic stewardship entails in the 21st century.

That redefinition begins with a renewed focus on work, dignity and resilience. The Republican Party must build an economic narrative that centers on taming inflation, boosting wages, rebuilding America’s industrial base and greater healthcare security for the paycheck-to-paycheck class. Conservatives should pursue a pragmatic economic nationalism — one that ties together trade policy, manufacturing, energy production, workforce development and family formation. All proposed economic policies must be explained in concrete, local terms. The relevant questions each and every time should be: How does this policy tangibly benefit the average American, and how can the policy be messaged so that the benefit is clearly understood?

The voters Republicans need to reach are not tuning in to wonky policy seminars. They want results: lower energy bills, affordable groceries, job security and an economy that rewards hard work. The GOP must speak directly to these priorities with honesty and humility.

If economic anxiety persists through next fall’s midterms, voters will punish whichever party appears more indifferent to their struggles. The Trump administration and Republicans across the country need to get to work fast. That means more Trump-signed executive orders, within the confines of the law, that can provide real economic relief and security to the working men and women of America. And it certainly means a concerted congressional attempt to bolster the economic prospects of the middle and working classes, perhaps through the Senate’s annual budget reconciliation process.

Inflation must finally be tamed — including the Fed raising interest rates, contra Trump’s general easy-money instincts, if need truly be. Private health savings account access must be expanded and the ease of acquiring private healthcare must finally be divorced from the particular circumstances of one’s employment. More jobs and supply chains must be reshored. Concerns about child care affordability and parental leave availability must be addressed. And even more of our bountiful domestic energy must be extracted. These are just some of the various policies that voters might reward at the ballot box next fall.

Our searing cultural battles will continue — and they matter, greatly in fact. But when a family can’t afford its groceries or gas, such debates tend to fade into the background. Republicans must rebuild trust with voters on the most fundamental issue in American politics: the promise of economic opportunity and security.

It’s always dangerous to over-extrapolate and glean clear national lessons from a few local elections. But all three of the biggest recent races — for New York City mayor and for New Jersey and Virginia governors — had final winning margins for Democrats greater than most polling suggested. That seems like a clear enough rebuke. Accordingly, the Trump administration and Republicans across the country must deliver real economic results on the real economic issues facing the American people. If they don’t present a compelling economic vision and execute that vision capably and efficiently, there likely will be even greater electoral damage next fall.

That could all but doom the remainder of the Trump presidency. And what a disappointment that would be.

Josh Hammer’s latest book is “Israel and Civilization: The Fate of the Jewish Nation and the Destiny of the West.” This article was produced in collaboration with Creators Syndicate. X: @josh_hammer

US President Donald Trump has appeared on the CBS News programme 60 Minutes just months after he won a $16m settlement from the broadcaster for alleged “deceptive editing”.

In the interview with CBS host Norah O’Donnell, which was filmed last Friday at his Mar-a-Lago residence and aired on Sunday, Trump touched on several topics, including the ongoing government shutdown, his administration’s unprecedented crackdowns on undocumented migrants, the US’s decision to restart nuclear testing, and the trade war with China.

Trump, who regularly appears on Fox News, a right-wing media outlet, has an uneasy relationship with CBS, which is considered centrist.

In October 2020, the president walked out of a 60 Minutes interview in the lead-up to the 2020 election he lost, claiming that the host, Lesley Stahl, was “biased”.

Here are some key takeaways from the interview:

The interview took place one year to the day after Trump sued CBS

The president’s lawyers sued CBS owner Paramount in October 2024 for “mental anguish” over a pre-election interview with rival candidate Kamala Harris that Trump claimed had been deceptively edited to favour Democrats and thus affected his campaign.

CBS had aired two different versions of an answer Harris gave to a question on Israel’s war on Gaza, posed by host Bill Whitaker. One version aired on 60 Minutes while the other appeared on the programme Face the Nation.

Asked whether Israel’s prime minister, Benjamin Netanyahu, listened to US advice, Harris answered: “We are not going to stop pursuing what is necessary for the United States – to be clear about where we stand on the need for this war to end.”

In an alternative edit, featured in earlier pre-broadcast promotions, Harris had given a longer, more rambling response that did not sound as concise.

The network argued the answer was edited differently for the two shows due to time restrictions, but Trump’s team claimed CBS “distorted” its broadcasts and “helped” Harris, thereby affecting his campaign. Trump asked for an initial $10bn in damages before upping it to $20bn in February 2025.

Paramount, in July 2025, chose to settle with Trump’s team to the tune of $16m in the form of a donation to a planned Trump presidential library. That move angered journalist unions and rights groups, which argued it set a bad precedent for press freedom.

Paramount executives said the company would not apologise for the editing of its programmes, but had decided to settle to put the matter to rest.

The company was at the time trying to secure federal approval from Trump’s government for a proposed merger with Skydance, owned by Trump ally Larry Ellison. The Federal Communications Commission has since approved the merger that gives Ellison’s Skydance controlling rights.

On October 19, Trump’s son-in-law, Jared Kushner, and Steve Witkoff, US special envoy to the Middle East, were interviewed on 60 Minutes regarding the Israel-Gaza war.

He solved rare-earth metals issue with China

After meeting with Chinese President Xi Jinping in South Korea last Thursday, Trump praised his counterpart as a “strong man, a very powerful leader” and said their relationship was on an even keel despite the trade war. However, he blamed China for “ripping off” the US through its dominance of crucial rare earth materials.

Trump told 60 Minutes he had cut a favourable trade agreement with China and that “we got – no rare-earth threat. That’s gone, completely gone”, referring to Chinese export restrictions on critical rare-earth metals needed to manufacture a wide range of items including defence equipment, smartphones and electric vehicles.

However, Beijing actually only said it would delay introducing export controls for five rare-earth metals it announced in October, and did not mention restrictions on a further seven it announced in April this year. Those restrictions remain in place.

Xi ‘knows what will happen’ if China attacks Taiwan

Trump said President Xi did not say anything about whether Beijing planned to attack autonomous Taiwan.

However, he referred to past assurances from Xi, saying: “He [Xi] has openly said, and his people have openly said at meetings, ‘We would never do anything while President Trump is president’, because they know the consequences.”

Asked whether he would order US forces to action if China moved militarily on Taiwan, Trump demurred, saying: “You’ll find out if it happens, and he understands the answer to that … I can’t give away my secrets. The other side knows.”

There are mounting fears in the US that China could attack Taiwan. Washington’s stance of “strategic ambiguity” has always kept observers speculating about whether the US would defend Taiwan against Beijing. Ahead of the last elections, Trump said Taiwan should “pay” for protection.

He doesn’t know who the crypto boss he pardoned is

When asked why he pardoned cryptocurrency multibillionaire and Binance founder Changpeng Zhao last month, Trump said: “I don’t know who he is.”

The president said he had never met Zhao, but had been told he was the victim of a “witch hunt” by the administration of former US President Joe Biden.

Zhao pleaded guilty to enabling money laundering in connection with child sex abuse and “terrorism” on his crypto platform in 2023. He served four months in prison until September 2024, and stepped down as chief executive of Binance.

Binance has been linked to the Trump family’s cryptocurrency company World Liberty Financial, and many have questioned if the case is a conflict of interest.

In March 2025, World Liberty Financial launched its own dollar-pegged cryptocoin, USD1, on Binance’s blockchain and the company promoted it to its 275 million users. The coin was also supported by an investment fund in the United Arab Emirates, MGX Fund Management Limited, which used $2bn worth of the World Liberty stablecoin to buy a stake in Binance.

This part of the interview appeared in a full transcript of the 90-minute interview, but does not appear in either the 28-minute televised version or the 73-minute extended online video version. CBS said in a note on the YouTube version that it was “condensed for clarity”.

Other countries ‘are testing nuclear weapons’

Trump justified last week’s decision by his government to resume nuclear testing for the first time in 33 years, saying that other countries – besides North Korea – are already doing it.

“Russia’s testing, and China’s testing, but they don’t talk about it,” Trump said, also mentioning Pakistan. “You know, we’re an open society. We’re different. We talk about it. We have to talk about it, because otherwise you people are gonna report – they don’t have reporters that gonna be writing about it. We do.”

Russia, China, and Pakistan have not openly conducted tests in recent years. Analyst Georgia Cole of UK think tank Chatham House told Al Jazeera that “there is no indication” the three countries have resumed testing.

He’s not worried about Hamas disarming

The president claimed the US-negotiated ceasefire and peace plan between Israel and Hamas was “very solid” despite Israeli strikes killing 236 Gazans since the ceasefire went into effect. It is also unclear whether or when the Palestinian armed group, Hamas, has agreed it will disarm.

However, Trump said he was not worried about Hamas disarming as the US would force the armed group to do so. “Hamas could be taken out immediately if they don’t behave,” he said.

Venezuela’s Maduro’s ‘days are numbered’

Trump denied the US was going to war with Venezuela despite a US military build-up off the country’s coast and deadly air strikes targeting alleged drug-trafficking ships in the country’s waters. The United Nations has said the strikes are a violation of international law.

Responding to a question about whether the strikes were really about unseating Venezuela’s President Nicolas Maduro, Trump said they weren’t. However, when asked if Maduro’s days in office were numbered, the president answered: “I would say, yeah.”

US government shutdown is all the Democrats’ fault

Trump, a member of the Republican Party, blamed Democrats for what is now close to the longest government shutdown in US history, which has been ongoing since October 1.

Senators from the Democratic Party have refused to approve a new budget unless it extends expiring tax credits that make health insurance cheaper for millions of Americans and unless Trump reverses healthcare cuts made in his tax-and-spending bill, passed earlier this year.

The US president made it clear that he would not negotiate with Democrats, and did not give clear plans for ending the shutdown affecting 1.4 million governent employees.

US will become ‘third-world nation’ if tariffs disallowed

Referring to a US Supreme Court hearing brought by businesses arguing that the Trump government’s tariff war on other countries is illegal and has caused domestic inflation, Trump said the US “would go to hell” and be a “third world nation” if the court ordered tariffs to be removed.

He said the tariffs are necessary for “national security” and that they have increased respect from other countries for the US.

ICE raids ‘don’t go far enough’

Trump defended his government’s unprecedented Immigration and Customs Enforcement (ICE) raids and surveillance on people perceived to be undocumented migrants.

When asked if the raids had gone too far, he responded: “No. I think they haven’t gone far enough because we’ve been held back by the judges, by the liberal judges that were put in by [former US Presidents Joe] Biden and [Barack] Obama.”

Zohran Mamdani is a ‘communist’

Regarding the New York City mayoral race scheduled for November 4, Trump said he would not back democratic socialist Zohran Mamdani, and called him a “communist”. He said if Mamdani wins, it will be hard for him to “give a lot of money to New York”.