Economist: Life Will Become 'More Unaffordable' Under Trump

Economist Warns of Rising Costs Under Trump

Economist and podcast host Peter Schiff said on Fox News that everyday life would become “more unaffordable” under President Donald Trump’s second term than it was during Joe Biden’s presidency, triggering a sharp public clash between the two. Schiff made the remarks during an appearance on Fox & Friends, hosted by Griff Jenkins. The White House / Wikimedia

Spending and Inflation Concerns

During the segment, Schiff argued that Trump’s current economic direction closely resembles Biden’s approach in key areas, particularly large-scale government spending. He warned that rising federal deficits, combined with the Federal Reserve’s likely return to interest rate cuts and quantitative easing, would push inflation higher and weaken affordability for ordinary Americans. Office of President Joe Biden / Wikimedia

Temporary Relief, Long-Term Pressure

Schiff acknowledged that gasoline prices may be lower in the short term but said most other expenses remain elevated and continue to climb. He cautioned that affordability pressures are likely to worsen as Trump’s second term continues. John Guccione / Pexels

Trump Responds on Truth Social

Trump responded to Schiff’s remarks in a post on Truth Social, criticizing Fox News for featuring him as a guest. Trump described Schiff as a “Trump-hating loser” and accused him of misleading viewers about the state of the economy. The White House / Wikimedia

Claims of Falling Prices

In his response, Trump insisted prices are declining, pointing to gasoline prices that have dropped to $1.99 per gallon in some states. He argued that inflation is easing and said his administration is fixing what he called “the affordability crisis,” which he blamed on Biden-era policies. Engin Akyurt / Pexels

Border and Media Criticism

Trump added, “Much of it, like the border, is already fixed.” He also criticized the producers of Fox & Friends Weekend, suggesting the network was moving “in a different direction” by giving Schiff airtime—highlighting growing tensions between Fox News programming and Trump-aligned media outlets. The White House / Wikimedia

Schiff Challenges Trump to Debate

Schiff did not retreat following Trump’s attack. Instead, he publicly challenged the president to debate the U.S. economy, saying Trump lashed out because Schiff had drawn attention to the risks of larger deficits, rising prices, and worsening affordability. Gage Skidmore, CC BY-SA 3.0 https://creativecommons.org/licenses/by-sa/3.0, via Wikimedia Commons

Broader Economic Picture

Schiff said his full Fox News segment explained why gas prices, housing costs, wages, and the broader inflation picture were not as positive as Trump’s political messaging suggested. He warned that accelerating government spending would continue pushing prices higher. Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0 https://creativecommons.org/licenses/by-sa/2.0, via Wikimedia Commons

Housing Market Warning

Housing affordability was another focal point of Schiff’s critique. He argued that decades of federal intervention distorted the housing market, inflating a real estate bubble that has made homeownership increasingly unattainable. Jakub Żerdzicki / Unsplash

Risk of a Housing Correction

Schiff predicted that nationwide home prices may need to fall by 20 to 30 percent to restore affordability. However, he warned such a correction could trigger another financial crisis by erasing home equity and increasing mortgage defaults. Jakub Żerdzicki / Unsplash

Blame on Federal Housing Policy

Schiff placed responsibility on government-backed institutions such as Fannie Mae and Freddie Mac, arguing their policies artificially drove housing prices higher and worsened the affordability crisis. John Guccione / Pexels