Economists and business leaders react to Trump’s State of the Union address

Paul Krugman framed the address as historically long and riddled with distortions, saying that Trump tried to paint an overly rosy picture despite affordability pressures that many households still feel.

In a Substack post headlined “A SOTU Like No Other,” Krugman described the speech as “so little truth, so much time.”

He said Trump failed to seriously grapple with the affordability problems he thinks are driving public pessimism — while “doubling down” on tariffs that he said would make those pressures worse.

“Was the plan to turn public opinion around by boring America into submission?” he asked.

Ian Bremmer focused less on policy specifics and more on the atmosphere in the chamber, calling it a reflection of broader national polarization.

“Completely divided chamber of Congress reflecting a completely divided United States,” Bremmer wrote on X.

When asked if any of it was new, he later added, “new? hardly. worse? absolutely.”

Bill Ackman praised Trump’s retirement-savings proposal — a federal savings plan modeled on the Thrift Savings Plan, with an annual government match of up to $1,000 — calling it one of the speech’s most significant policy moments.

Ackman said that 46 million working Americans don’t have a 401(k), pension, or similar plan, and said that a federally matched account could expand household wealth-building and reduce reliance on welfare programs over time.

He also predicted expanding the match could become a rare bipartisan win, writing: “This is an amazing initiative for our country.”

Peter Schiff said that Trump’s first-year inflation performance wasn’t meaningfully better than former President Joe Biden’s and predicted it could worsen.

“We may have changed presidents, but inflation remains the same,” Schiff wrote on X, pointing to the consumer price index rising by 2.7% in Trump’s first year versus 2.9% in Biden’s last year.

He said that CPI would “likely rise by more than 3%” in Trump’s second year.

“We may have changed presidents, but inflation remains the same,” he added.

Roger Altman said the president pulled a “classic Trump” and “put on a show,” but delivered a speech unlikely to move weak economic approval numbers.

Speaking on CNBC’s Squawk Box on Wednesday, he said Trump described an economy that was “roaring and couldn’t be better,” but said there’s a “disconnect” because many Americans — especially lower-income households — “are having a hard time.”

Even so, Altman struck a more upbeat tone on fundamentals, forecasting 2.5% to 2.75% growth, cooling inflation, and real wage gains as inflation ticks toward the Fed’s 2% target.

On trade, he warned tariffs may stick around: The revenue impact is so significant that it would be “hard” for either party to walk away from them, he said.