The NPR Politics Podcast
Episode: President Trump tries to refocus on the economy
Date: January 13, 2026
Host: Miles Parks
Panelists: Deepa Shivaram (White House), Scott Horsley (Chief Economics Correspondent)
Overview
In this episode, the NPR Politics team discusses President Trump’s renewed focus on the economy amidst low public approval ratings, the mixed signals in economic data, and Trump’s escalating feud with Federal Reserve Chair Jerome Powell. The hosts explore the political challenges around communicating economic realities to voters and analyze the latest developments in Trump’s attempts to influence Fed policy.
Key Discussion Points & Insights
1. Trump’s “Economy First” Speech in Detroit
[01:13 - 03:39]
- President Trump plans a major Detroit speech to recenter his messaging on the economy.
- Context: Recent polls, including the NPR/PBS/Marist poll, show Trump’s economic approval at a historic low (36%).
- Traditionally, the economy has been Trump’s strongest area with voters, often associated with his business background.
- Despite Trump’s optimistic messaging—such as no taxes on tips and promises of bigger tax refunds—many Americans remain unconvinced that economic improvements have reached them.
Deepa Shivaram [02:14]: “It's always been one of his strongest issues. So when a number dips like that, it is definitely really significant..."
Notable Quote
Miles Parks [02:03]: “...the economy is one of those things that even at times when people were mad about Trump about everything else, the economy has always been something that voters generally trusted in him.”
2. The Real Economic Picture – A Mixed Bag
[03:39 - 06:08]
- Economic data presents a complex scenario:
- GDP growth was strong through Q3 2025; job growth however has sharply slowed (only 50,000 jobs in December).
- Annual inflation is stuck at 2.7%, neither worsening nor improving.
- Gasoline prices are down, but essentials like groceries, electricity, and heating are up.
- Americans are increasingly sensitive to energy prices, which used to be less top-of-mind.
Scott Horsley [03:44]: “The data paints a rather mixed picture... some things have gotten cheaper. Gasoline... But grocery prices continue to climb. Electricity prices are up and natural gas prices... are way up right now.”
Notable Quote
Miles Parks [05:04]: “I definitely, I had that moment yesterday. I opened up my gas bill and I was like, whoa, okay, that's where we're at right now.”
3. Trump’s Messaging Challenge
[06:08 - 08:05]
- Trump’s messaging on affordability is inconsistent, often filtered through his social media rather than formal White House communication.
- When Trump discusses negative economic aspects, he generally blames Democrats or immigrants, while claiming the economy under his administration is “thriving.”
- The administration touts positive developments more than acknowledging persistent challenges, mirroring difficulties faced by the Biden White House.
Deepa Shivaram [06:08]: “...there are just a lot of other things the President would rather be talking about. And if he is going to talk the economy, he wants to talk about how great the economy is.”
4. Will Tax Cuts Change Public Opinion?
[08:05 - 10:53]
- The anticipated spring tax refunds are being promoted as a coming relief; however, most benefits will go to upper-income families and corporations.
- For lower and middle-income Americans, any tax relief is likely to be modest and possibly offset by higher healthcare costs or insurance changes.
- Special measures (like no tax on tips) may help some, but a broad windfall is unlikely.
Scott Horsley [08:49]: “...the lion's share of these tax cuts are going to upper income families and corporations. If people at the bottom rungs... the tax cuts really aren't all that much... they're also, for many people, being offset by higher costs for health insurance, maybe a loss of Medicaid...”
5. The Trump vs. Powell Federal Reserve Showdown
[12:57 - 19:36]
-
Trump continues to pressure the Fed and Chair Jerome Powell to lower interest rates, arguing it would invigorate the economy.
-
The DOJ launched an investigation into the Fed’s cost overruns and Powell’s testimony, interpreted widely as political retaliation.
-
Powell issued a strongly worded public statement defending Fed independence:
Scott Horsley (summarizing Powell) [14:19]: “The administration is trying to influence and intimidate us into cutting interest rates, and we’re not going to do it… This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions, or whether instead monetary policy will be directed by political pressure or intimidation.”
-
A rare bipartisan backlash erupted in Congress:
- GOP Senator Thom Tillis (NC) pledged to block Fed nominees until the investigation resolves.
-
Financial markets have not reacted strongly, signaling confidence the Fed’s independence will hold.
Notable Quote
Scott Horsley [16:58]: “It's probably not working the way that the administration would like… the financial world believes that the Fed will conduct itself and set interest rate policy on its own lights and not be subject to political pressure.”
6. Political Blame and Spin on the Economy
[18:29 - 19:36]
- Trump continues to blame Jerome Powell (“too late”) and the Biden administration for any negative economic feelings, despite evidence to the contrary.
- Both hosts emphasize there is little objective evidence supporting Trump’s claim that he inherited a “terrible” economy in 2024.
Scott Horsley [18:47]: “The US economy was the envy of the world in 2024… there's just very little objective evidence to back that up.”
7. Interest Rates, Inflation, and Political Risk
[19:36 - 21:23]
- The hosts clarify the tension between Trump’s push for lower interest rates and the risk of reigniting inflation, highlighting the nuance the administration does not publicly address.
- The Fed is hesitant to cut rates amid ongoing above-target inflation, despite labor market slowing.
Scott Horsley [20:35]: “They're kind of caught between this tug of war where… they want lower interest rates because the job market has slowed down so much, but they also kind of want to keep rates elevated because prices are still going up faster than they'd like, and that's the tension there.”
Memorable Moments & Quotes
- Scott Horsley’s “backseat baby”: Personal anecdote at the episode’s open lightens the tone—[00:47].
- Scott on consumer attention: “...now they know... they've seen these big spikes and they can tell you how much they paid for electricity last month...” [05:12]
- Powell’s strong stance: The rare direct, public rebuke of presidential interference (summarized above) [14:19].
- Miles Parks on political lessons: “...you can't tell voters the economy's good if they're not feeling it...” [07:49].
- Scott on inheritance claims: “That's just not true... The US economy was the envy of the world in 2024...” [18:44].
- Scott on the tug of war at the Fed: “...they also kind of want to keep rates elevated because prices are still going up faster than they'd like, and that's the tension there.” [20:35].
Timeline of Highlights
- 01:13 – Deepa Shivaram explains the significance of Trump’s low economic polling and Detroit speech
- 03:44 – Scott Horsley offers statistical overview of the economy’s mixed condition
- 06:08 – Discussion of Trump’s inconsistent messaging on affordability and immigration focus
- 08:49 – Scott unpacks who really benefits from Trump’s tax cuts
- 12:57 – Deep dive into the Trump–Powell feud and the latest DOJ investigation
- 16:58 – Reactions in Congress and financial markets; bipartisan defense of Fed independence
- 18:47 – Scott directly disputes Trump’s claim about inheriting a weak economy
- 20:35 – Analysis of the risks in lowering interest rates amid ongoing inflation
Conclusion
This episode delivers a thorough, nuanced look at President Trump’s current struggles to sell his economic narrative amid real and perceived economic woes. It highlights the complexities of economic messaging, the political dangers of ignoring voter sentiment on affordability, and the high-stakes battle brewing over the independence of the Federal Reserve.
Listeners come away understanding not just what is happening—but the interplay of data, public opinion, political messaging, and policy that will define the months ahead.