Things Trump ‘Needs’ To Do for American’s Wallets in 2026, According to Economists

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Whether you love or hate how the second Donald Trump Administration has handled the economy, it has certainly made changes. And it shows no signs of slowing that pace of change. 

So what changes do economists say the president should enact in 2026? Plus, take a look at how these household bills have changed since Trump took office.

Rein in Deficit Spending To Reduce Interest Rates

Treasury bonds determine more than most people realize, from mortgage rates to auto loan rates to business loans that keep companies afloat. And the higher the deficit spending by the government, the higher the interest yields that bond investors will demand — driving up the cost of borrowing across the economy.  

“The government’s $2 trillion deficit puts upward pressure on Treasury yields,” explains Charles Urquhart, finance professor and founder of Fixed Income Resources. “Clear policy, financial discipline and predictable Treasury issuance would translate into cheaper mortgages, car loans and business credit.”

Dr. Mariano Torras, economics professor at Adelphi University, said Trump and Congress should raise tax revenue to reduce the national debt and Treasury yields.

“As the national debt approaches $40 trillion, the budget and deficit are on many people’s minds,” Torras stated.

Incentivize More Home Construction

Single-family home prices continue hovering near all-time highs, according to Zillow, up 0.1% over the last 12 months. As a quick fix, the president proposed extending the debt horizon for mortgages from 30 years to 50, per the Associated Press. 

Urquhart doesn’t buy it.

“We have high housing costs because we don’t build enough new units, not because 30-year loans are too short,” he shared. “Federal incentives could help bring prices back within reach, such as zoning reform, modular construction and skilled-trade training.”

Stop Fueling Inflation

On the campaign trail, Trump promised to “end inflation on Day One” (see this campaign rally transcript from Roll Call). But economists argue that two of his policies have actually driven inflation higher: Tariffs on imports and pressuring the Federal Reserve to cut the federal funds rate. 

After dipping to 2.3% in April, the U.S. Bureau of Labor Statistics reported a steady rise in Consumer Price Index (CPI) to 3% through September. Economists surveyed by Wolters Kluwer in November forecast an average of 3.3% for the core Personal Consumption Expenditures (PCE) Price Index in the fourth quarter of 2025, largely driven by tariffs. 

If the Trump administration wants lower inflation, it could use tariffs purely as a negotiating tactic to eliminate other countries’ tariffs on American goods. In other words, to restore truly free trade. 

Stop the Brinkmanship

Political brinkmanship such as allowing the federal government to shut down for the longest period on record doesn’t do the economy any favors. 

Seventy-one percent of the economists surveyed by Wolters Kluwer expect the shutdown to have a “measurable impact” on the economy in the fourth quarter. It caused the consensus forecast to drop to a dismal annualized rate of 0.8%, markedly lower than the previous projection. 

“Punchy slogans and memes won’t improve the financial health of Americans,” added Urquhart. “That requires stable markets, reasonable rates and less opportunity for ordinary people to get nickeled and dimed.”

Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.

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