Wall Street Journal: The Trump administration is moving to contain popular anger through a package of measures to reduce prices
The Wall Street Journal revealed The American newspaper said on Sunday that US President Donald Trump and his economic team have begun a feverish race to contain the rising public anger over the rising costs of living, after the recent electoral results that issued a warning to Republicans about the price crisis.
According to the report, US administration officials are discussing a wide series of measures aimed directly at reducing prices for consumers, most notably a proposal to send direct cash payments to American families worth no less than $2,000 per citizen, in addition to opening monopoly investigations against meat packing companies amid accusations that they are manipulating and raising prices. Beef, as well as a plan to reduce customs duties on coffee, fruits, and some common food commodities.
The American newspaper reported that Trump’s advisors pressured him after the elections to focus on the “ability to afford the cost of living” file, stressing that they are working on a “road map” These include new negotiations with pharmaceutical companies to reduce prescription prices, accelerating approvals for offshore drilling projects to reduce the cost of energy, and preparing new proposals to contain the housing crisis that is hitting most states.
But the American newspaper confirmed that lowering prices faces great difficulties, as most prices move according to market forces and not direct political decisions, while the Federal Reserve Board remains primarily responsible for interest rates, and has so far ignored Trump’s pressure. Also, any cash payments require Congressional approval.
The Wall Street Journal reported: The administration believes that reducing customs duties is one of the most powerful tools available to reduce prices, pointing to the administration’s announcement on Friday of reducing duties on beef, coffee, nuts, spices, and dozens of agricultural commodities, in a clear shift from Trump’s escalatory approach to trade.
The newspaper indicated that the prices of some goods rose as a direct result of the customs duties. The average price of a pound of roasted coffee was $9.14 in September, compared to $6.47 a year earlier, largely due to a 50% tariff on coffee imports from Brazil.
But Trump has repeatedly expressed his dissatisfaction with pressure from his advisors to focus on the price issue, writing on his platform: “Affordability is a lie when used by Democrats… It is a complete scam.”
The report added that The US President is angry at criticism that he “did not do enough.” To lower prices, considering that the Republicans themselves did not highlight his achievements as required.
While signing the law to end the government shutdown, Trump said that ending the financial crisis “will allow Republicans to continue working to reduce the cost of living.” And “Making America accessible to everyone again.”
The Wall Street Journal notes: Until Trump had promised during his campaign to reduce prices from “the first day of his second term,” pledging to cut energy costs in half within 18 months and to reduce mortgage interest rates to 2%.
Despite Trump’s insistence that the economy is “the strongest in history,” opinion polls show – According to the newspaper – Two-thirds of voters believe that the president has not succeeded in addressing the high-cost of living crisis.
The newspaper added that the crisis is more complex than the White House imagines: housing is suffering from a severe shortage in supply, which cannot be remedied quickly, and electricity prices are rising due to the boom in data centers that consume energy intensively, while oil is already at its lowest levels in four years.
Experts warn – According to the newspaper – That “easy cures do not exist,” and that some problems are “chronic.” It cannot be solved in the short term.
Although inflation has slowed slightly, rising prices still represent the greatest burden on the working classes that make up Trump’s electoral base, which do not usually benefit from huge gains in stock markets.
The Wall Street Journal concludes: Its report indicates that Trump has asked his advisors to prepare an additional package of proposals to attract voters again, and that his team is discussing a program of tax deductions, 50-year housing loans, and income restrictions to take advantage of the new monetary support, in an attempt to provide concrete solutions before the next elections.
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