Since Donald Trump returned to the White House in January 2025, the stock market indexes have repeatedly hit new highs. As of January 14, 2026, the S&P 500 Index has risen nearly 16%, compared to a 24% increase during Trump’s first term. Over the past 12 months, the Dow Jones Industrial Average has risen by 13%, while the Nasdaq Index has seen a 20% increase.
After a 0.6% economic contraction in the first quarter of 2025, the U.S. economy accelerated throughout the year, surpassing economists’ expectations and successfully avoiding the feared economic recession. GDP growth was 3.8% in the second quarter and 4.3% in the third quarter, marking the best performance in two years. While official data for October to December 2025 has not been released, the Atlanta Federal Reserve estimates a growth rate of around 5%. Treasury Secretary Scott Bessent expects 2026 to be a “year of economic boom” with continued strong growth.
In 2022, the inflation rate reached 9.1%, the highest level in decades. Although consumer prices remained high in 2025, the inflation rate was lower compared to the Biden administration’s period. The year started with an annual inflation rate of 3%, decreased to 2.3% in April, and then rose back to 3% five months later. In November and December, price pressures eased, with the 12-month inflation rate significantly slowing to 2.7%, mainly due to the drop in gasoline prices.
Due to businesses stockpiling goods before Trump implemented global tariffs, the trade deficit widened in the first three months of 2025. However, monthly trade balance in the U.S. has significantly improved. After reaching a peak of $136 billion, the trade deficit decreased to $29 billion in October, marking the lowest level in 16 years.
Since last summer, the U.S. labor market has been characterized by what some economists call “low fire, low hire,” with companies neither laying off nor hiring new employees. In 2025, employers added a total of 584,000 jobs, averaging an increase of 49,000 jobs per month. However, as government employment decreased by 277,000, job growth slowed, reflecting efforts to streamline federal government agencies and support private sector employment.
One significant achievement of the Trump administration has been the substantial drop in gasoline prices. From record oil production to regulatory relaxations, both businesses and consumers have enjoyed lower energy costs. Crude oil prices are currently below $60 per barrel, with average gasoline prices below $2.80 per gallon in over twenty states. Market observers expect this trend to continue in the coming year.
At the start of Trump’s second term, 30-year fixed-rate mortgage rates were around 7%. Subsequently, rates dropped significantly, even falling below 6% for the first time in over three years. The rate decline was attributed to a decrease in Treasury bond yields and various strategies adopted by the federal government to reduce housing costs.
Border security has been a key policy focus for Trump. Through enhanced border control measures, illegal border crossings into the U.S. decreased by 93%, leading to the deportation of 622,000 individuals, with another 1.9 million choosing voluntary departure. These achievements were made possible by increased law enforcement personnel and tightened procedures.
The Trump administration secured a significant legislative victory with the “One Big Beautiful Bill Act” (OBBBA) and advanced many policy goals through executive action, including tariffs and regulatory measures. Of the 220+ executive orders signed by Trump, some faced legal challenges from advocacy groups, businesses, and states, with resulting lawsuits even making their way to the Supreme Court.