Market Update: Trump Touted Economy, Taxes, Healthcare in State of the Union Speech – Full Analysis

President Donald Trump zeroed in on what he calls America’s “roaring economy.”

The president gave his annual speech to a joint session of Congress on Tuesday night. He opened the event focused on his administration’s economic agenda, especially inflation rates and consumer prices.

“I inherited a nation in crisis with a stagnant economy,” Trump told lawmakers, adding, “A short time ago, we were a dead country. Now we are the hottest country anywhere in the world.”

Here are the biggest notes on the economy from the speech.

Consumer prices

Trump said his administration has driven down inflation and mortgage rates, along with energy prices. He touted a strong stock market, and said the administration has “lifted a record number of Americans off food stamps” with their updated SNAP rules.

He blamed Democratic leaders for high inflation rates. “Their policies created the high prices” his administration was aiming to bring down, he said.

The consumer price index, a key measure of inflation, cooled slightly in January but remains about the Federal Reserve’s 2% goal.

Taxes and investments

The president added that he and Republican allies delivered the “largest tax cuts in American history” in their latest budget bill, alongside promises to end taxes on tips, overtime, and Social Security.

He did not introduce new tax policies early in the speech, but he did mention Trump Accounts, a newly-launched federal investment account for children that will be available in July.

For retirees, Trump announced a new plan to offer federal retirement matching contributions to Americans without employer-sponsored plans.

“My administration will give these oft-forgotten American workers, great people, the people that built our country, access to the same type of retirement plan offered to every federal worker. We will match your contribution with up to $1,000 each year,” he said.

Healthcare

Trump said he “wants to stop all payments to big insurance companies.” He underscored his “Great Healthcare Plan,” which outlines the administration’s goals to lower drug prices and insurance premiums, implement cost-sharing programs, and increase cost transparency.

“I am also ending the wildly inflated cost of prescription drugs,” he said. The Trump administration officially launched TrumpRx a few weeks ago, a direct-to-consumer prescription platform. The president spoke specifically about affordable IVF drugs.

The administration and Republican lawmakers opted not to renew enhanced Affordable Care Act subsidies at the end of 2025. The credits helped lower-and middle-income families afford marketplace insurance coverage, and millions have dropped their plans so far due to skyrocketing 2026 premium costs.

Housing

The president said his administration is lowering housing prices.

Thirty-year fixed mortgage rates have been trending downward over the past year, though they remain relatively high. Average rent prices have seen consistent, steep growth over the last five years.

He spoke about his January executive order to ban large Wall Street investment firms from buying single-family homes. “Now I am asking Congress to make that ban permanent, because homes are for people, not corporations,” he said.

Housing market analysts told Business Insider that this policy is unlikely to have a notable impact on housing affordability. These investors only own 2 or 3% of family rental properties in the US, typically in Southern and Sun Belt cities.

Trump also said his administration is boosting jobs in the construction sector, one of the few parts of the labor market alongside healthcare that has seen growth this year.

Economic outlook

Throughout his second term, the Trump administration has leaned into affordability issues, especially high prices on consumer goods. The White House has touted budget changes in the One Big Beautiful Bill Act, tax breaks for middle- and higher-income Americans. In some cases, the president has reached across the aisle for economic priorities, like a long-time Democrat-backed policy to rein in credit card rates.

As for the job market, growth has been the lowest in decades aside from recessions, and Trump’s Department of Government Efficiency took a sizable swing at the federal workforce. The administration hopes the pending appointment of former Wall Streeter Kevin Warsh to replace Federal Reserve Chair Jerome Powell will be a path toward lower interest rates in 2026, which could juice hiring — at the risk of growing inflation.

A YouGov and MarketWatch poll published February 24 found that 83% of Americans believe affordability has worsened or remained stagnant under Trump’s second term.

Trump is expected to speak for at least two hours this evening, covering topics like the Supreme Court tariff ruling, AI investment, immigration, and foreign policy.