The Trump administration's economic promises are proving to be a fools' gold, with the US economy falling short of the 'Golden Age' it was promised. The eurozone, derided by Trump, has outpaced the US in growth, with a 1.8% annualised rate compared to the US's 1.5%. Canada, hit by Trump's tariffs, grew at 3.4%. The US growth slowdown is attributed to the Middle East war, global trade wars, and inflation. Personal consumption expenditures (PCE) data shows a 0.1% fall in the PCE index, still above the Fed's 2% target. The war's impact on oil prices and inflation is ongoing, with petrol and diesel prices remaining elevated. AI investment and imported equipment are also weighing on US growth. The Fed's policy rate remains unchanged, but the bond market is reacting with rising yields, which could choke spending and investment. The Trump administration's trade and immigration policies are under scrutiny, with critics arguing for a more balanced approach. The AI boom's sustainability is a concern, and the administration's economic model is questioned, especially with the eurozone's resilience despite energy shocks and Chinese imports. The article concludes that the 'Golden Age' remains elusive, and the administration's promises are yet to be fulfilled.
