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Fox News host Brian Kilmeade discusses the impact of President Trump’s economic policies heading into the new year on “One Nation.”
Michael Faulkender, former deputy secretary of the US Department of the Treasury, says it is too early to doubt the president that of Donald Trump assessment of the economy.
“I think we should recognize how much of a foundation this has laid for next year,” Faulkender said of the administration’s record during an appearance on Fox Business’ “Kudlow” on New Year’s Eve.
With 2025 in the rearview mirror, Faulkender believes the administration’s changes in its first year will refute Democrats’ criticism that the Republican trio has done little to lower prices.
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Michael Faulkender, then Deputy Secretary of the Treasury, during an interview with Bloomberg Television outside the White House in Washington, April 11, 2025. (Reynolds/Bloomberg via Getty Images)
Among other economy-related executive orders, President Donald Trump pushed through his signature Big Beautiful Bill Act – a piece of legislation that cut taxes, created new forms of tax relief, and expanded tax policies advanced in the first Trump administration.
“Once that was reintroduced early in this administration, you saw the benefits of that trickle down to the economy,” Faulkender said.
The administration also reversed many energy-related executive orders from the Biden administration that limited oil production on federal lands.
“Oil today costs $57 a barrel. This has not yet fully integrated into the economy,” Faulkender explained. “And if you have little energy and lots of energy, add to that the big tax refunds that are coming in February and March. And that success that we saw in the second and third quarters of this year is going to continue into next year.”
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President Donald Trump speaks to reporters after signing an executive order in the Oval Office of the White House in Washington, December 18, 2025. (Anna Moneymaker/Getty Images)
Oil prices have fallen significantly since the start of the administration, according to New York Mercantile Exchange data — down nearly 28% from their 2025 peak in January of $78.70 a barrel.
Inflation fluctuated for much of the year, avoiding the Federal Reserve’s 2% target.
More recently, the United States reported inflation of 2.7% in November, according to the Bureau of Labor Statistics. The lowest inflation rate of the year was reached in April at 2.3%. Inflation peaked at 3% in September.
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A customer shops at a Safeway store on June 11, 2024 in Mill Valley, California. (Justin Sullivan/Getty Images)
Faulkender said the second administration’s rollout of actions on energy and the economy closely mirrored efforts during Trump’s first term.
“If you look back at the economic record of the first administration, you see that the combination of low energy prices, deregulation and pro-growth tax reform, are all the bases for generating a strong economy that is not accompanied by inflation,” Faulkender said.
Faulkender served as the second-ranking Treasury Department official in the second Trump administration until his resignation in August. We don’t know why he left.
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Before his appointment in March, Faulkender briefly served as acting IRS commissioner and helped the administration’s transition team as a senior advisor following the 2024 elections.
