From Fox News · Peter D'Abrosca · · 1m
Trump's $5K Checks May Not Arrive
Economist warns Trump's cash promises likely unfulfilled, debt crisis deepens
In brief
Economist warns Trump's cash promises likely unfulfilled, debt crisis deepens Trump's $5,000 checks for Americans won't materialize due to fiscal mismanagement Originally reported by Fox News.
Checks Unlikely to Arrive
Economist Douglas Holz-Eakin says Trump's $5,000 checks for Americans won't materialize, similar to past unfulfilled promises.
“So the president has promised a lot of checks, the most recent being five thousand dollars to every American if Republicans hold on to the House and Senate. We ever going to see these? Well, I don't think so.”
Fiscal Policy Concerns
Holz-Eakin, former Congressional Budget Office director, warns current economic policies are unsustainable with $40 trillion debt and rising inflation.
“We're forty one trillion in debt. The deficit is two trillion every year and it's getting larger. You can't just keep putting people on government programs.”
Tariffs and Economic Headwinds
Trump's tariffs and oil prices have created economic challenges, with inflation outpacing wages for middle-class families.
“The first headwinds were tariffs, second headwinds were the oil prices and fight with Iran, and we need to get past those battles.”
Federal Reserve Action
The Federal Reserve raised interest rates to combat inflation, contradicting Trump's push to lower rates for easier borrowing.
“Inflation remains elevated. Today's policy action will support a timelier return to the Committee's two percent goal.”
Debt and Deficit Crisis
U.S. debt hits $40 trillion with a $2 trillion annual deficit, making fiscal policy unsustainable without tax increases.
“We're forty one trillion in debt. The deficit is two trillion every year and it's getting larger.”
Economic Fixes Needed
Holz-Eakin proposes reducing spending and controlling debt without raising taxes to restore economic stability.
“I'd like to see a bit of a U-turn that got the debt under control, didn't spend quite so much money, and got through this without having to raise our taxes.”
What to remember
Trump's $5,000 checks for Americans won't materialize due to fiscal mismanagement
