Yes
He should.
No
He shouldn’t.
Inflation and the cost of living remain major concerns for millions of American families, putting renewed attention on what President Donald Trump and Congress can do about federal spending, deficits and rising prices.
The federal government continues to spend considerably more than it collects in revenue. The Congressional Budget Office projected earlier this year that the federal budget deficit would total approximately $1.9 trillion in fiscal year 2026, while federal spending would reach about $7.4 trillion, or 23.3% of the nation’s gross domestic product. CBO also projects that federal debt held by the public will continue rising over the coming decade if current policies generally remain in place.
President Trump has already pursued spending reductions in several areas. Most recently, his administration announced the cancellation of nearly $1 billion in previously approved spending through a controversial budget mechanism known as a pocket rescission. The White House described the action as part of Trump’s continuing effort to eliminate wasteful federal expenditures, while critics have questioned the administration’s legal authority to cancel congressionally approved funds in this manner.
Whether additional federal spending cuts would significantly reduce inflation is more complicated.
Government fiscal policy can influence economic demand, federal borrowing, investment and interest costs, according to the Congressional Budget Office. Reducing government spending can, under some circumstances, reduce overall demand in the economy and lessen inflationary pressure. But inflation is influenced by many other factors as well, including energy costs, tariffs, supply conditions, wages, consumer demand and Federal Reserve monetary policy.
CBO’s 2026 economic outlook has specifically identified tariffs and other economic forces as contributors to elevated inflation this year. Its projections anticipate inflation moderating over time, although those forecasts can change as economic conditions change.
The debate also involves difficult choices. Major spending reductions can decrease deficits, but where those reductions occur matters. Cuts involving federal agencies, foreign assistance or administrative programs can have different economic consequences from changes involving large mandatory programs.
For taxpayers watching grocery bills, housing expenses, utility costs and other everyday expenses, the central issue is whether Washington should make significantly deeper spending reductions as part of its response to inflation.