Trump has no choice. The definition of electoral economy also applies to the USA. For example, last year, in order for Harris to win the elections, rapid interest rate cuts were started and more were promised. Then the elections ended and there was no further interest rate cut for almost a year. That’s why Trump Powell’s He thinks his decisions are political. As we head to the 2026 midterm elections, Trump needs interest rates to fall with inflation.
2026 Midterm Elections and Inflation
If inflation If it remains high and interest rates do not fall sufficiently, the consequences of the tight monetary policy that has been going on for 4 years on the voters will upset the government. That’s why Trump is trying to explain that the high inflation period of the last 4 years is Biden’s fault, and therefore the Democrats’ fault, and that the Democrats are responsible for the economic damage caused by the shutdown to the country.
Going to the 2026 midterm elections, Trump must lower interest rates along with inflation and win the hearts of millions of voters. Otherwise, it will lose its majority in the Senate and the House of Representatives and become a lame duck.
white house He gave a clear message about this with the post he shared while the article was being prepared;
“President Donald J. Trump inherited an economic mess when he took office. Years of mismanagement by Biden and Democrats in Congress — spending trillions of dollars in new spending and dramatically expanding the government while insisting for years that inflation was “temporary” — have left the country on the brink of economic collapse.”
The Trump administration has been working from day one to contain Biden’s inflation crisis, stop Biden’s excessive price increases, and reduce expenses for ordinary families. While this is not something that will happen overnight, evidence suggests that this trend is in the right direction. The Trump administration will not stop until high prices caused by Democrats’ policies are fully brought under control. We’re making progress — and the best is yet to come. President Trump has Biden’s inflation crisis under control.”
Inflation, which was on average 5% during the Biden period, reached its worst levels in recent years with 9.1%. Trump, on the other hand, brings the average inflation closer to 2.7% with both the base effect and the decline in energy prices.
“Under Biden, workers have lost over $2,900 in purchasing power — meaning inflation is rising faster than wages.
“Even accounting for higher prices, Americans’ real wages increased by nearly $700 during President Trump’s second term and continue to rise by nearly $1,200 after his first full year in office.” – White House
Cryptocurrencies Will Rise
If Trump wants to win the elections, there is an economic environment he needs to create. As a result of this economic environment, cryptocurrencies should rise with stocks. One of the biggest trump cards at hand is the decline in items such as gasoline.
“Under President Trump, prices of eggs, butter, ice cream, fresh fruit, cereal, fish, seafood, rice, pasta and ham have fallen, and more aid is on the way.
During President Trump’s second term, the average 30-year fixed mortgage rate is 6.17%. at the end of October — 12% lower than when he took office. “According to the Consumer Price Index, the 12-month change in overall housing costs is at its lowest level in four years.” – White House
Moreover, customs duty exemption on some food items was also announced this week. Trump not only brings more investment into the country with tariff agreements, but also balances inflation while balancing the cost of housing by eliminating the immigration problem. Moreover, he strives for more, and according to his thesis, customs duties, immigration policy and other steps he takes will ensure that interest rates decrease along with inflation.
The announcement, which came at the time the article was being prepared, says that customs duties for beef, tomatoes, coffee and bananas will decrease. This is all related to the country’s entry into the electoral economy due to the upcoming midterm elections. Of course cryptocurrencies Although we cannot see the results in the short term, it is supportive in the medium term.
