Trump running out of options to fix inflation, economic woes before election, experts say

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Set us as preferred WASHINGTON — With three months remaining until election day, there is now little the Trump administration can do to bring relief to Americans battered by years of stagnant wages and steep inflation before they hit the polls, experts say — complicating midterm campaigning for Republicans and sharpening the opportunity for Democrats to win back some control in Washington.That’s in part because the Trump administration has very few levers to turn the tide in such a short period, and has shown little interest in using those it does have, experts said.Rather, President Trump has persisted in waging war in Iran and pushed forward with new tariffs on trade partners despite both contributing to soaring costs for food, gas and other basic necessities.Other options, such as issuing rebate checks for consumers or releasing strategic oil reserves, would be costly in the long run, experts said.“There isn’t much available on a 14-week clock that doesn’t cost more later than it delivers now,” said Patrick Harker, professor at the University of Pennsylvania Wharton School and former president of the Federal Reserve Bank of Philadelphia.The Federal Reserve on Wednesday also declined to use its primary tool for reducing inflation — increasing interest rates — by instead holding rates steady.

Trump had not supported a rate increase, instead pressuring the central bank to lower rates, which can lower borrowing costs but increase inflation.Some factors driving up costs are virtually impossible to resolve in the near term, such as damage to oil refining capabilities in the Middle East as a result of the war in Iran.Others are already baked into pricing to come as a result of tariffs and fuel costs, including for groceries, experts said.Incumbent parties often suffer midterm losses when voters are broadly pes...