Trump says inflation "solved," makes final midterm prediction - Newsweek

President Donald Trump declared that inflation is “solved” as Americans headed to the polls for the midterm elections on Tuesday, striking an optimistic tone on the economy despite widespread dissatisfaction over the cost of living.

“Inflation is solved. Everything is great. Everybody respects us again, we have a great country,” Trump said, in part, during a Tuesday morning interview on Fox & Friends.

Trump’s approval rating on the economy has fallen to an all-time low in CNBC All-America Economic Survey polling. The October survey found 34 percent of registered voters approved of his handling of the economy, down from 38 percent in July, while 65 percent disapproved.

The findings mirror broader concerns about affordability heading into the 2026 midterms, the first nationwide verdict on Trump's second presidential term.

An NBC News Decision Desk Poll published in October found that just 27 percent of U.S. adults approved of Trump’s handling of the cost of living. The economy ranked as Americans’ most important issue, while 44 percent said their financial situation had worsened over the previous year. Majorities also said economic conditions had forced them to change what groceries they buy and cut back on spending to afford necessities.

Annual inflation rose to 3.7 percent in September, according to the U.S. Bureau of Labor Statistics, from 3 percent at the start of Trump’s second term in January 2025.

Trump’s declaration that inflation is “solved” came as Energy Secretary Chris Wright acknowledged that Americans are still confronting high prices, while arguing that those prices are encouraging greater supply.

“Prices are high. The best cure for high prices is high prices,” Wright said Tuesday on Fox Business. “It grows supply."

Trump did not dwell on those concerns Tuesday. Instead, he touted his administration’s record and predicted that Republicans would outperform expectations with control of Congress at stake.

“I think the results are going to be better than you think,” Trump said.

In a post on X, Vice President JD Vance sought to remind voters of the Trump administration’s efforts to cut taxes over the past year and a half.

“We ended taxes on overtime. We ended taxes on tips. We ended taxes on Social Security,” Vance wrote.

But the changes enacted under Trump’s sweeping tax law are more limited than Vance’s characterization suggests.

More than 40 states have not adopted the federal tax breaks for tips and overtime, meaning workers who qualify for the federal deductions may still owe state taxes on that income.

The law also did not eliminate federal taxes on Social Security benefits. Instead, it created a temporary tax deduction for older Americans that applies to income more broadly, rather than specifically exempting Social Security benefits from taxation.

Newsweek has reached out to the White House via email on Tuesday morning for comment.

Election forecasters have projected a strong showing for Democrats, with the national political environment becoming increasingly difficult for Republicans.

Final forecasts have pointed to the possibility of a “blue wave,” with Democrats well-positioned to make substantial gains in Congress and potentially take control of both the House and Senate.

The party occupying the White House has historically lost seats in midterm elections, presenting another challenge for Republicans as they seek to retain control of Congress.

Brent Buchanan, a Republican pollster, said economically struggling and younger voters could be particularly important to the midterm outcome because his firm's data shows those groups have shifted significantly away from Trump since 2024.

“Our data shows that the voters who will decide this election because they've shifted the most away from Trump since 2024 are the economically downtrodden, the apolitical, and the Millennials and Gen Z who the economy of the last couple decades has left behind,” Buchanan told Newsweek.

Buchanan said Republican candidates who have responded empathetically to voters' concerns and maintained a disciplined message are best positioned to survive those shifts.

Trump and Republicans received some encouraging economic news this week.

Average nationwide gas prices across the U.S. have recorded their biggest weekly decline in months, falling by 17.1 cents to reach $4.12 per gallon, according to fuel-price tracking platform GasBuddy.

The national average is also down 24.7 cents from a month ago but remains $1.13 per gallon higher than a year ago, says the data compiled from more than 12 million individual price reports covering over 150,000 gas stations.

Oil prices also fell more than 7 percent at the start of the week. There had been hopes of diplomatic progress between the U.S. and Iran following talks between Iranian and Qatari officials over the weekend.

"Oil came down $10, a record yesterday," Trump said on Fox & Friends. "The Hormuz Straight, we have total control of it with the Navy blockade."

However, an analyst warned that the decline may not last, with uncertainty over the Iran conflict continuing to threaten oil markets.

"Average gasoline prices fell in nearly every state over the last week, while diesel declined in most, as refinery maintenance wraps up and seasonal demand continues to fade with the onset of cooler weather," Patrick De Haan, head of petroleum analysis at GasBuddy, said.

"Volatility could return quickly after the election," De Haan added. "Whether new attacks occur or a truce takes hold around the Strait of Hormuz, along with continued Ukrainian strikes on Russian refineries, will likely dictate where prices head as we move closer to the holidays."

This is a breaking news article. Updates to follow.

Contact Newsweek editors on this story: Gabe Whisnant and Dave Siminoff.