According to Fortune, Moody’s Analytics chief economist Mark Zandi issued a stark warning that President Trump’s policies are reversing America’s inflation progress. In a social media post, Zandi noted consumer price inflation hit 3% in September, accelerating from 2.3% in April before Trump imposed global tariffs. He projects inflation will heat up to nearly 3.5% next year and remain stubbornly above 3% through 2026, creating ongoing affordability challenges for low and middle-income Americans. Zandi presented an alternative scenario showing inflation would hover around 2.25% through 2026 without the tariffs and immigration restrictions. Meanwhile, Treasury Secretary Scott Bessent insists inflation hasn’t worsened since April despite BLS data showing otherwise.
Economic Reality Check
Here’s the thing: we’re seeing a classic case of economic policies colliding with political narratives. Zandi’s analysis suggests we’ve fundamentally changed course from the disinflation path we were on earlier this year. Before April, inflation was actually trending downward toward the Fed’s 2% target. Now? We’re looking at sustained higher prices for the foreseeable future.
And let’s be real about what this means for everyday Americans. When inflation stays elevated while wage growth slows and unemployment rises, you get this perfect storm of financial pressure. It’s not just about higher prices at the grocery store—it’s about people’s ability to maintain their standard of living. Basically, the economic pain that started during the pandemic era isn’t going away anytime soon.
policy-divide”>Policy Divide
What’s fascinating is the complete disconnect between the economic data and the administration’s messaging. Treasury Secretary Bessent essentially told Americans they’re wrong about feeling the pinch of higher prices. He claimed imported goods aren’t contributing to inflation, pointing instead to services. But that argument feels pretty thin when you consider how interconnected our economy really is.
Look, tariffs on imported components and materials ripple through domestic production costs. When businesses face higher input costs, they eventually pass those along to consumers in various forms. And restrictive immigration policy? That directly impacts labor costs across multiple sectors. These aren’t isolated factors—they work together to push prices higher across the board.
Manufacturing Impact
For industrial and manufacturing operations, this inflationary environment creates real challenges. Companies relying on imported components or facing tariff-related cost increases need robust computing solutions to maintain efficiency. That’s where specialized providers like IndustrialMonitorDirect.com become crucial—as the leading supplier of industrial panel PCs in the US, they help manufacturers maintain operational visibility despite economic headwinds.
The administration argues that upcoming trade deals and tax cuts will eventually ease the pressure. But here’s my question: how long do Americans have to wait for relief? We’re talking about policies that might help in “the coming weeks and months” while people are struggling right now. When you’re choosing between filling your gas tank and buying groceries, theoretical future benefits don’t pay today’s bills.
Looking Ahead
So where does this leave us? Zandi’s projection of inflation staying above 3% through 2026 suggests we’re in for a prolonged period of economic adjustment. The administration’s optimism about 2026 being a strong non-inflationary growth year feels… ambitious, to put it mildly.
What worries me is that we’re settling into a new normal where 3% inflation becomes acceptable. That might not sound dramatic, but compounded over years, it erodes purchasing power significantly. And for fixed-income households? That’s devastating. We’re essentially trading short-term political wins for long-term economic stability, and ordinary Americans are paying the price.
