
President Trump signs executive orders aimed at tackling inflation and lowering living costs, but experts question their effectiveness.
Quick Takes
- Trump signs executive orders for emergency price relief and declares a national energy emergency
- Orders focus on reducing housing costs, expanding energy production, and cutting regulations
- Economists skeptical about the orders’ ability to significantly lower prices
- Inflation remains above the Federal Reserve’s 2% target despite recent decreases
Trump’s Bold Move to Combat Inflation
In a series of executive actions, President Donald Trump has launched a comprehensive approach to tackle inflation and lower the cost of living for American families. The cornerstone of this initiative is an executive order aimed at delivering emergency price relief, coupled with a declaration of a national energy emergency.
The executive order directs federal agencies to take decisive steps towards reducing costs across various sectors, including housing, healthcare, and energy. Trump’s administration claims that these measures will help combat what they describe as an inflation crisis caused by the previous administration’s policies.
Trump signed an Executive Order to address the cost of living that skyrocketed under the Biden/Harris administration pic.twitter.com/V8b9yAVqK1
— Libs of TikTok (@libsoftiktok) January 21, 2025
Focus on Housing and Energy
A significant part of Trump’s strategy involves addressing housing affordability. The order aims to reduce regulatory burdens that the administration claims account for 25% of new home construction costs. Carl Harris of the National Association of Homebuilders (NAHB) praised the move, stating its potential to boost housing production and affordability.
“President Trump understands that America is facing a housing affordability crisis and the only way out of this crisis is to remove barriers like unnecessary and costly regulations that are raising housing costs and preventing builders from building more attainable, affordable housing,” said Harris.
On the energy front, Trump declared a “national energy emergency” and signed an order to expand U.S. oil and gas production. This includes increasing Alaskan oil production for export, particularly to the Asia Pacific region. The administration argues that high energy costs permeate every part of the economy and that addressing this issue is crucial for national prosperity and security.
Skepticism and Challenges
Despite the administration’s optimism, economic experts have raised concerns about the tangible effectiveness of these measures. They point out that enduring supply chain barriers and entrenched economic issues could impede the intended reduction of inflation and the cost of living for American families.
“Trump’s cost of living order fails to address the root causes of inflation, namely corporate profiteering and broken supply chains,” said Lindsay Owens, executive director of the Groundwork Collaborative, a progressive economic think tank. “This order is a talking point, not a plan.”
Critics argue that the executive order lacks specific details on implementation and serves more as a statement of priorities than a concrete plan. Marc Goldwein from the Committee for a Responsible Federal Budget noted that while the order might not directly solve or reduce inflation, it could encourage agencies to think more critically about not worsening price increases.
The Road Ahead
As the administration moves forward with implementing these orders, the true impact on inflation and the cost of living remains to be seen. While some sectors, like the housing industry, are optimistic about the potential benefits, others remain skeptical about the orders’ ability to address the root causes of inflation.
President Trump acknowledges the challenges ahead, stating, “I’d like to bring them down. It’s hard to bring things down once they’re up. You know, it’s very hard. But I think that they will.”
As the nation watches these policies unfold, the coming months will be crucial in determining whether Trump’s executive actions can effectively deliver the promised emergency price relief and defeat the cost of living crisis facing American families.