CBO Projects Inflation to Remain High, Labor Market to be Weaker Due to Trump Administration Policies

WASHINGTON, D.C. - Following publication of the Congressional Budget Office's Current View of the

Economy from 2026 to 2028, U.S. Senator Jeff Merkley (D-OR), Ranking Member of the Senate Budget Committee, released the following statement. The report makes clear that President Trump's tariffs, immigration policy, and the passage of the Big, Ugly Betrayal bill will keep inflation high while also slowing employment growth, making it harder for working families to make ends meet.

"We knew before the Big, Ugly Betrayal bill was ever signed into law that Trump's reckless tariff agenda was keeping inflation high and pressing workers to the wall. Despite this, Republicans passed their Big, Ugly Betrayal law that forces millions off of their health care and causes millions of children to go hungry - all to fund tax giveaways for the wealthiest Americans," said Ranking Member Jeff Merkley. "So, it is no surprise that the new economic projections published today by the Congressional Budget Office still show that these policies are hurting hardworking Americans."

"This has to end. Republicans cannot continue to make working Americans sicker and poorer while giving handouts to billionaires. We must put an end to Trump's families lose, and billionaires win agenda," Merkley continued.

In June, CBO told Merkley that Trump's tariff policies slow economic growth, boost inflation, and hurt working- and middle-class families. In August, after passage of the Big Ugly Law, CBO confirmed that it overwhelmingly benefits the ultra-rich, while working Americans pay the price. That report made clear that the Big Ugly Law steals from working families to hand billionaires massive tax breaks.

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