We finish 2025 with some good news about the US economy. It’s clearly a better feeling than we had when we started 2025. As Peter Navarro opined, we got some good numbers last week:

Once again, Wall Street’s forecasters were caught flat-footed.

The latest GDP report shows the U.S. economy growing at a 4.3 percent annual rate, crushing expectations of 3.2 percent. Nearly every major economist missed it. Again. The reason is simple: they still do not understand the power of Trump’s economic model—or they refuse to admit it.

This growth surge is not consumer-driven sugar highs or government spending gimmicks. It is the result of Trump’s tax cuts working in tandem with tough, strategic trade policy to attract trillions of dollars of private investment back to the United States.

Time will tell whether the public is optimistic come late summer. Why late summer? Because it will determine how people vote in November.

Image created using AI.

If people feel bad about the US economy, then the Democrats will exploit that and probably pick up the House. On the other hand, if voters feel that the Trump administration is moving in the right direction, then the GOP will hold the House.

It’s that simple. President Trump needs a GOP majority to keep the ball moving forward. A Democrat House will do nothing except to give Trump Derangement Syndrome a megaphone for two years and turn off most reasonable voters who want solutions, not more Trump bashing.

My personal feeling is that the economy will be doing better by the time people start focusing on voting. I am banking on cheap gasoline prices “fueling” the kind of recovery that matters to people. I am also realistic and recognize that electricity bills will be higher in blue states than in red states. This is also true of housing costs because of all of the regulations and costs in places such as New York City and San Francisco.

Let’s see how it unfolds, but let me bet on Trump and Bessent.

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