White House Stands Firm on Economic Policies as Concerns Mount

March 11, 2025 TruthUSA

The economic policies of Trump are expected to foster long-term economic benefits, while the recent fluctuations in the stock market are merely a temporary adjustment, according to the press secretary.

During a press briefing on March 11, White House Press Secretary Karoline Leavitt asserted that the economic strategies of the Trump administration would lead to sustainable financial growth, despite the current stock market upheaval being viewed as a phase of temporary adjustments.

Economic apprehension intensified in February as families and small businesses prepared for a daunting year ahead, with reports from both the Federal Reserve and the National Federation of Independent Business (NFIB) revealing increasing financial despair.

In light of the downturn, the White House indicated that the existing economic instability is a necessary shift away from the policies of the Biden administration, which they claim resulted in an “economic disaster.”

“We are undergoing an economic transition,” Leavitt stated during the March 11 press briefing. “This is a transition away from the mess created under the previous administration led by Joe Biden.”

Leavitt cited the rising delinquency rates on credit cards, which reached a 12-year high during the prior administration, as well as high inflation that diminished wage growth under Biden, to reinforce the administration’s perspective that some short-term challenges are unavoidable as the economy shifts from an “economic nightmare” to “a golden age of American manufacturing.”

She acknowledged the concerns of consumers and expressed confidence that Trump’s agenda—highlighting deregulation, tax cuts, and a strengthened manufacturing sector—would eventually restore public confidence. Citing previous economic progress made during President Trump’s tenure as proof of his effective policies, she urged the public to remain patient as the economy adapts.

The White House’s assurances come as new data from the Federal Reserve Bank of New York reveals an increase in economic anxiety. The likelihood of rising unemployment surged by 5.4 percentage points, reaching 39.4 percent, the highest level since September 2023. Additionally, the expectation of failing to make a debt payment increased to 14.6 percent—the highest figure since April 2020—with younger Americans and those without higher education being particularly affected.

Predictions for wage growth have stagnated, and consumer confidence in stock market performance has declined, with only 37 percent of individuals believing that share prices will rise in the next year—the lowest since December 2023. Despite the increase in financial uncertainty, projections for inflation remained relatively stable, with short-term inflation anticipated to rise slightly to 3.1 percent, and medium- and long-term forecasts holding at 3 percent. Nonetheless, the expected increases in prices for essential goods, including gas, groceries, medical care, rent, and tuition suggest an ongoing strain on household finances.

On Main Street, sentiment among small businesses has continued to decline. The NFIB Small Business Optimism Index decreased for the second month in a row in February, undoing much of the post-election surge following Trump’s victory. The percentage of small business owners anticipating improved economic conditions fell by 10 points to 37 percent. Furthermore, those perceiving the current time as favorable for expansion dropped to 12 percent, marking the most significant monthly decline since April 2020.

“Uncertainty is increasing on Main Street and for various reasons. The number of small business owners anticipating better business conditions in the coming six months has decreased, and fewer see this as a good time to expand,” stated NFIB Chief Economist Bill Dunkelberg. “Inflation continues to be a significant concern, consistently ranking second only to labor quality.”

Inflation continues to pose a significant challenge, as the percentage of small business owners increasing average selling prices surged by 10 points to 32 percent, marking the largest rise since April 2021. Plans for price hikes also grew, with 29 percent of businesses expecting to raise prices in the next three months—an 11-month high. Labor shortages and associated costs are consistently impinging on business operations, with 38 percent of owners encountering difficulties in filling vacancies, and 19 percent reporting labor quality as their foremost concern.

Trump’s increasing trade policies have been identified as crucial factors in recent surveys indicating a decline in consumer confidence, which initially surged after the November elections due to optimistic expectations that Trump’s pro-business policies would bolster the economy.

Trump maintains that while his policies may inflict short-term discomfort, they are ultimately designed to fortify the economy. However, some business leaders and economists caution that rising costs, disruptions in supply chains, and potential retaliatory tariffs might exacerbate inflation and hinder growth.

Delta Air Lines CEO Ed Bastian echoed these worries, highlighting that economic uncertainty is already impacting corporate travel expenditures.

“We’ve observed companies beginning to pull back. Corporate spending is starting to stagnate,” Bastian shared with CNBC. “Consumers in the discretionary market dislike uncertainty.”

In the meantime, on March 10, the Small Business Administration (SBA) announced it will initiate a “Made In America Manufacturing Initiative” aimed at eliminating $100 billion in regulations and improving access to capital for small businesses, striving to support Trump’s economic policies and revive the blue-collar boom reminiscent of his first administration.

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