How is the US economy really doing under President Trump?

President Donald Trump has been boasting about the performance of the US economy ahead of the midterm congressional elections, claiming he has boosted incomes, reduced inflation and created jobs.
While the overall US economy is faring better than many expected after Trump launched his sweeping "Liberation Day" tariffs in 2025, there's evidence those import taxes and the impact of the US-Israel war with Iran have pushed up inflation, with the harmful effects felt by most American households.
The US economy is also being helped by an AI investment boom, and could falter if that spending were to dry up.
Opens BBC News in a new tab