America’s economy has never been stronger.
At least that’s what President Donald Trump told the Davos audience on Wednesday. From gasoline and housing, to healthcare and credit cards, Trump framed his economic agenda as one centered on affordability.
Trump repeatedly credited his policies for lowering everyday costs, and promised more savings in the future. But the reality is slightly different.
As Americans navigate a brutal job market and climbing cost of living, Business Insider dove into the data behind the president’s Davos speech.
Energy
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What Trump said: “The price of gasoline is now below $2.50 a gallon in many states… Soon it will be averaging less than $2 a gallon.”
What’s happening: The average price of gasoline in the US was $2.81 a gallon as of January 19, nearly half of what it was during a 2022 high. Gas prices haven’t been below $2 since the height of the pandemic.
As of January 21, AAA reported that ten states have an average gas price at or below $2.50.
Housing
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What Trump said: “Homes are built for people, not corporations. America will not become a nation of renters. We’re not going to do that. That’s why I’ve signed an order banning large institutional investors from buying single-family homes.”
What’s happening: Trump signed an executive order targeting institutional investors this month — but it’s unlikely to have a notable impact on housing affordability. These investors only own 2 or 3% of family rental properties in the US, largely in Southern and Sun Belt cities.
Thirty-year fixed mortgage rates have been trending downward over the past year, though they remain relatively high. Average rent prices have seen consistent, steep growth over the last five years.
Healthcare
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What Trump said: “The cost of prescription drugs is coming down by up to 90%.”
What’s happening: The president is negotiating with some pharmaceutical companies to lower the cost of drugs and has launched TrumpRx, a government-run, direct-to-consumer prescription platform aimed at connecting people with cheaper medications. Trump’s healthcare plan, released last week, outlines the administration’s goals to lower drug prices and insurance premiums while maximizing transparency for Americans.
Enhanced Affordable Care Act subsidies expired in December because of Republican opposition in Congress, leading to a spike in premiums for millions of Americans on marketplace plans. January data shows that, with rising costs, at least 1.4 million Americans dropped their healthcare plans between 2025 and 2026.
White House Spokesperson Kush Desai told Business Insider that the enrollment decline is “entirely a result of the Trump administration’s commonsense measures to cut waste, fraud, and abuse and remove people who were improperly enrolled on highly-subsidized ACA plans.”
The One Big Beautiful Bill Act also proposed changes to Medicaid, including stricter work requirements for enrollees and a federal funding reduction of $1 trillion over the next ten years.
Credit cards
What Trump said: “I’m asking Congress to cap credit card interest rates at 10% for one year.”
What’s happening: Trump has called on Congress to cap credit card rates that have “ripped off” consumers. In the third quarter of 2025, the most recently available data, American credit card debt reached a record high of $1.23 trillion — a $24 billion increase from the previous quarter and a $67 billion increase from Q3 2024.
Credit card rates have dipped slightly in recent months, following the Fed’s cautious rate-cutting pattern, though they have remained high for the past several years.
This proposal has received bipartisan support, with Sen. Elizabeth Warren and Sen. Bernie Sanders pushing for a similar credit card cap. “Trump even acknowledge the bipartisan appeal, telling CNBC’s Joe Kernen Wednesday that the proposal sounds like something “the mayor of New York maybe came up with.”
Bank and business leaders are largely opposed, arguing that a 10% cap would prevent companies from adequately pricing subprime credit risk.
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