Pres. Trump defends economic progress

WASHINGTON (Gray DC) - A slew of economic reports released Thursday shows some mixed signs in the U.S. economy.

A new report shows the U.S. economy is still growing, but rising gas prices are posing major headwinds for continued economic growth.

The Commerce Department reported on Thursday that gross domestic product expanded at a 2 percent rate during the first quarter of 2026. That’s a rebound from the 0.5% growth in the fourth quarter of 2025.

President Donald Trump insists the American economy is on fire, “And as you know, more people are working right now than at any time in the history of our country. We’re doing great. And there’s more investment being made in the United States and any country at any time, at any time in history. And a lot of that, I and a lot of that maybe in a certain way, maybe more importantly, auto plants are all coming back to our country.”

Despite that good news, the core inflation rate hit its highest level since November of 2023. That change was driven by global shortages in oil and gas. The 12-month inflation rate is now at 3.2 percent, well above the Federal Reserve’s 2 percent target.

Some analysts on Wall Street are calling this a “split screen economy.” While companies continue to invest heavily in AI (aritficial intelligence), many households are struggling with higher inflation and soaring gas prices.