Trump’s $2K Tax Rebates & Fed Rate Cuts Before Midterms

Trump Unveils $2,000 Tax Rebates as Fed Cuts Rates Ahead of Midterms

President Trump has made affordability a central issue ahead of the midterm elections. He announced that reducing costs for Americans remains a top priority, while the Federal Reserve adjusted interest rates for the third time this year.

The Treasury has also revealed plans for one-time tax rebates of up to $2,000 per household in early 2026, targeting low- and middle-income families.

The Federal Reserve recently cut interest rates by a quarter percentage point, marking its third reduction this year. While the move aligns with efforts to ease financial pressure, President Trump suggested a deeper cut could have been more effective.

Treasury Secretary Scott Bessent confirmed that eligible households—those meeting last year’s stimulus criteria—will receive rebates ranging from $1,000 to $2,000. The total cost of the programme is estimated between $100 billion and $150 billion.

Meanwhile, the Federal Reserve forecasts stronger economic growth, lower inflation, and stable unemployment by 2026. Officials expect rising productivity, increased consumer spending, and a decline in inflation over the next year.

Public opinion, however, remains divided. A recent AP-NORC poll found only 31% of voters approve of President Trump’s economic policies as the midterms approach.

The tax rebates will provide direct financial relief to millions of low- and middle-income families. With the Federal Reserve predicting improved economic conditions, the measures aim to address affordability concerns before the midterm elections.

The total rebate programme could inject up to $150 billion into the economy, though its long-term impact remains to be seen.