Economist Stephen Moore told Newsmax that newly released inflation data showing prices rising just 2.7% last month signal a rapidly improving economy and set the stage for a major economic expansion under President Donald Trump.
Moore, co-founder of Unleash Prosperity, made the comments during an interview Friday on "Wake Up America," calling the inflation report "shocking" and far better than most economists had predicted after delays caused by the recent government shutdown.
"These were fantastic numbers," Moore said, describing the report as an early Christmas gift for American families.
He said many forecasters had expected inflation to remain above 3% and were "way off," predicting inflation will fall to about 2% early next year, aligning with the Federal Reserve's stated target.
Moore argued the cooling inflation data represents a reversal from the Biden administration, which he said oversaw nearly 21% inflation over four years.
He said falling prices combined with rising wages mean Americans are finally seeing gains in after-inflation income.
"What it really means is that for Americans, their after-inflation income is rising," Moore said.
He pointed to strong employment indicators, noting that the U.S. currently has about 7.5 million job openings. Moore said those trends, combined with declining inflation, have left him "super bullish" about the economy heading into 2026.
Moore compared the current economic setup to the early years of both former President Ronald Reagan and Trump's administrations. He said tax policy will play a central role, just as it did during the Reagan-era expansion that followed the 1981 tax cuts.
"I think we're really set up for a boom of that nature," Moore said, recalling what he described as a seven-year economic surge during Reagan's first term.
He also said the economy under Trump before the COVID-19 pandemic was among the strongest in modern history. Moore asserted that absent the pandemic, Trump would have won a landslide reelection in 2020.
Moore cited declining gas prices, record-high stock market indexes, and widespread job openings as further evidence of economic strength. He noted that, in some states, gas prices have fallen to about $2.50 a gallon — with even lower prices reported in parts of Oklahoma.
Looking ahead, Moore said upcoming tax changes will boost take-home pay for middle- and working-class Americans starting in January. He said reduced withholding, along with policies such as eliminating taxes on tips and overtime, will significantly increase disposable income.
"When you look at after-inflation and after-tax income, I estimate next year most Americans will be about $2,500 ahead of where we were when Biden left office," Moore said.
Moore also predicted a strong finish to the holiday shopping season, citing solid consumer spending over the past six months and robust Black Friday sales. Despite widespread talk of an affordability crisis, he said consumer behavior suggests growing optimism.
"People are acting as if they're better off," Moore said. "They're acting as if they're optimistic about the future, and they should be because the best is yet to come."
Moore credited the improving economic outlook to policies he said put American workers and families first, adding that the formula for growth "is not rocket science."
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