Voters will judge Trump on the economy - how is it doing?
Summary
The US economy grew by 2% in the first quarter of 2026 despite higher prices caused by the ongoing US-Iran war and tariffs. Rising oil prices pushed inflation up and kept interest rates steady, while tech investments, especially in artificial intelligence, helped drive economic growth.Key Facts
- The US economy grew at an annualized rate of 2% in early 2026 after slowing at the end of 2025.
- Inflation rose to 3.3% in March, the highest in almost two years, partly due to higher fuel costs.
- Oil prices jumped from about $73 a barrel before the war to a peak of $126, then fell back to $111.
- Gasoline prices increased to $4.30 per gallon in April from under $3 in February.
- The Federal Reserve kept interest rates between 3.5% and 3.75%, with no cuts expected soon.
- Mortgage rates rose from about 6% to 6.3% since the conflict started.
- Increased investment by technology companies, particularly in artificial intelligence, boosted economic growth.
- US stock markets have generally increased since the war began, with the Nasdaq up about 10%.
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