A former senior Treasury official says critics of President Donald Trump may be overlooking what matters most about the economy — timing.
Michael Faulkender, who previously served as deputy secretary at the U.S. Department of the Treasury, argues that the economic policies enacted during the administration’s first year are only now beginning to show their full impact.
Speaking on Fox Business’ Kudlow on New Year’s Eve, Faulkender said the Trump administration laid critical groundwork in 2025 that could deliver stronger results moving forward — despite ongoing criticism from Democrats.
“Economic policy doesn’t deliver overnight results,” Faulkender explained. “What we saw this past year was the foundation being set.”
Tax Relief and Pro-Growth Policy Return
A central part of President Trump’s economic agenda was the passage of the Big Beautiful Bill Act, legislation that reduced taxes, expanded relief for families and businesses, and restored key policies from Trump’s first term.
Faulkender said reintroducing these tax measures helped restart economic momentum that had slowed in recent years.
“When those policies came back, the benefits began moving through the economy,” he said. “That process continues.”
Supporters argue that lower taxes and predictable policy are especially important for retirees, small business owners, and Americans living on fixed incomes.
Energy Policy Shift Drives Lower Costs
Another major change came in energy policy. The administration rolled back several Biden-era executive orders that restricted oil and gas development on federal land.
According to Faulkender, those decisions are already having an effect — even if consumers haven’t felt the full benefit yet.
“Oil prices are around $57 a barrel right now,” he noted. “That hasn’t fully worked its way into everyday costs.”
Data from the New York Mercantile Exchange show oil prices have fallen nearly 28% from their January 2025 high of $78.70 per barrel — a development that historically leads to lower transportation and household expenses.
Inflation Still Uneven, But Trending Lower
Inflation remains a concern for many Americans, particularly seniors. While price increases have fluctuated throughout the year, Faulkender believes policy changes are helping apply downward pressure.
According to the Bureau of Labor Statistics, inflation measured 2.7% in November. The lowest reading of the year came in April at 2.3%, while September briefly peaked at 3%.
Faulkender said these numbers resemble the early stages of Trump’s first term, when inflation eventually eased as energy prices dropped and deregulation expanded supply.
A Familiar Economic Playbook
“If you look back at the first Trump administration,” Faulkender said, “it was low energy prices, deregulation, and pro-growth tax reform that delivered strong economic growth without runaway inflation.”
He believes the same formula is being put back in place — and that the effects may become more visible in the months ahead as tax refunds arrive and energy savings filter through the economy.
Background on Faulkender
Faulkender served as the Treasury Department’s second-highest official during Trump’s second term before stepping down in August. While no official explanation was given for his departure, he previously served as acting IRS commissioner and advised the administration’s transition team following the 2024 election.
Why Supporters Say Patience Matters
Supporters of the administration argue that judging economic policy too early misses the bigger picture — especially for Americans nearing or already in retirement.
As Faulkender put it, “Strong economies aren’t built in a single quarter. They’re built by consistent policies that encourage growth, investment, and lower costs over time.”
