A new inflation report has delivered a political and economic jolt in Washington, sparking reactions from analysts and the White House alike. One of the loudest voices came from Harvard economist Ken Rogoff, who said the report was so strong that attempts to frame it negatively simply did not exist.
“There’s no other way to spin it,” Rogoff said during an interview on Thursday, adding that the results were better than what forecasters had expected.
The latest government data showed inflation falling to 2.7 percent in November 2025, down from 3 percent in September. The drop arrives at a moment when the administration faces ongoing scrutiny over the speed of the country’s economic recovery.
Trump Touts Progress, Blames Prior Administration
During a primetime address, President Donald Trump seized on the new numbers and argued that his team had reversed the economic turmoil he says was left behind.
“Here at home, we’re bringing our economy back from the brink of ruin,” Trump said.
He went further, sharply criticizing his predecessor. “The last administration and their allies in Congress looted our Treasury for trillions of dollars, driving up prices and everything at levels never seen before. I am bringing those high prices down and bringing them down very fast,” he added.
The remarks were delivered as part of a broader message aimed at reassuring Americans who still feel squeezed by everyday costs. Many voters say prices continue to sting, even as headline inflation inches downward.
Rogoff Says Drop Was Bigger Than Expected
Rogoff, a longtime Harvard economist, spoke about how the drop caught analysts off guard. In his view, the update marks a rare moment of unambiguously positive economic news.
“I was surprised, it was a better number than anyone was expecting. Look, inflation’s been very high. It’s stayed high. It has not been coming down,” he said.
He noted that many experts had forecast inflation above 3 percent. Instead, the reported number came in beneath that threshold. “People were expecting it to be above 3%. It was well below 3%. I mean, I think the president will take this as good news. The investors will think that interest rates [will] get cut more,” Rogoff said.
The comments signal that financial markets could interpret the drop as an early sign of future rate reductions, though policymakers have not confirmed any coming changes.
New Military Stipend Announcement
In the same address where Trump celebrated the slowing inflation rate, he rolled out a new initiative known as “Warrior Dividends.” The stipends are set to be distributed to all active-duty service members in recognition of the nation’s upcoming 250th anniversary.
The administration framed the payments as a gesture of national gratitude during what it calls a period of economic rebuilding.
Uneven Signs Beneath Encouraging Data
Despite the upbeat inflation figures, not all economic indicators are pointing upward. The national unemployment rate rose to 4.6 percent in November 2025, the highest level recorded since 2021. The uptick suggests that job growth has cooled, even as consumer prices show signs of stabilizing.
Economists say this combination can complicate the broader recovery, since improving prices alone may not offset labor-market strain. Still, the lower inflation figure has given the administration a political boost and a moment to claim clear economic progress.
