Ex-Treasury official says Trump's economic policies set to pay off this year

• Oil prices dropped from a 2025 high of $78.70 to $57 per barrel following Trump's energy deregulation, though Faulkender says these benefits haven't 'fully internalized' into the economy yet
• The Big Beautiful Bill Act extended Trump-era tax policies and created new forms of tax relief, with large refunds expected in February and March 2026
• Inflation remained stubbornly above the Fed's 2% target throughout 2025, ranging from 2.3% (April low) to 3% (September peak), ending at 2.7% in November

A former Trump administration Treasury official, Michael Faulkender, expressed optimism about the economic impact of Trump's policies during a Fox Business appearance on New Year's Eve. Faulkender, who served as deputy secretary of the U.S. Department of Treasury before stepping down in August, argued that the administration's first-year economic foundation will yield positive results in the coming year.

Key policy achievements highlighted include the Big Beautiful Bill Act, which slashed taxes and extended previous Trump-era tax policies, and the reversal of Biden administration energy restrictions on federal land. Oil prices have fallen significantly, dropping 28% from their 2025 high of $78.70 per barrel to $57 currently. Faulkender predicts these lower energy costs, combined with anticipated tax refunds in February and March, will drive continued economic growth.

Inflation data shows mixed results, with the November rate at 2.7%, above the Federal Reserve's 2% target. Throughout the year, inflation fluctuated between a low of 2.3% in April and a peak of 3% in September. Despite these variations, Faulkender remains confident that the combination of low energy prices, deregulation, and pro-growth tax reform will generate strong economic performance without accompanying inflation.

The article suggests that economic benefits from Trump's policies are yet to be fully realized in the broader economy. Faulkender draws parallels to Trump's first administration, where similar policies of energy independence, deregulation, and tax reform created what he describes as a strong, low-inflation economy. His assessment contradicts Democratic criticism that the Republican governing trifecta has failed to reduce prices for consumers.