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Updated on: February 24, 2026 / 11:27 PM EST
/ CBS News
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President Trump gave his 2026 State of the Union address on Tuesday evening, during which he addressed, among other topics, the economy — an urgent topic of concern for millions of Americans who say they're worried about everything from the price of food to spiraling health care costs.The president touted his work during his first year back in office, saying, "inflation is plummeting, incomes are rising fast, the roaring economy is roaring like never before."By conventional metrics, the economy looks resilient. Unemployment remains low at 4.3%; inflation is cooling; and GDP is expanding, with the U.S. largely shrugging off the impact of tariffs that economists feared could trigger a recession. Consumers — whose spending keeps the economy humming — also report feeling more confident of late amid a burst in January job creation. At the same time, many households still report grappling with stubbornly high prices for essentials like food, housing and health insurance, a disconnect that underscores the challenge Mr. Trump faces in touting his economic record.Mr. Trump has offered a range of proposals to address affordability issues. Yet some of the most visible initiatives, such as a push to cap credit card rates at 10%, have yet to show benefits, Bankrate senior economic analyst Mark Hamrick said in an email. Americans polled by the Pew Research Center in January said their top economic concerns are the cost of food, housing and health care. Food pricesThe cost of food has been a flashpoint for consumers since inflation soared to a 40-year high in 2022. High food prices also bedeviled former President Biden, prompting Mr. Trump to vow while on the campaign trail that he would end the "inflation nightmare."
