U.S Economy surges after Trump's speech

Donald Trump once again walked back his earlier remarks, ruling out tariffs and the use of force regarding Greenland. The decision removed the threat of penalties on eight European nations and helped cool U.S. markets, with Wall Street immediately turning green as the S&P 500 rallied 1.2% following the President's address in Davos. This diplomatic de-escalation followed a high-stakes meeting with NATO Secretary General Mark Rutte, where the administration established a "framework for a future deal" involving the proposed "Golden Dome" missile defense shield, a project Trump deems vital for national security.

The U.S. economy expanded at its fastest rate in two years from July to September, with GDP rising 4.4% annualized, revised up from an initial estimate of 4.3%. This growth was primarily driven by increases in exports and business investment, reflecting a robust industrial performance despite the global trade turbulence. The economy has exhibited remarkable resilience despite the ambiguities engendered by President Donald Trump’s economic strategies, notably his earlier imposition of double-digit tariffs on imports from nearly all nations worldwide.

In spite of the robust growth figures, a significant proportion of Americans express discontent regarding the economic climate, particularly concerning the elevated cost of living. Preliminary data for January 2026 indicates that consumer sentiment remains nearly 25% below the previous year's level, as high prices for essential "kitchen table" items like groceries, housing, and utilities continue to strain household budgets. This disconnect between high GDP growth and low consumer confidence remains a central challenge as the administration enters the mid-term election cycle

Benedetta Zimone