Trump Addresses Inflation Concerns in Meeting with McDonald’s Franchisees

Washington, Nov. 17, 2025 – Under intensifying pressure from U.S. consumers frustrated with persistently high prices, President Donald Trump met with McDonald’s franchise owners, operators and suppliers in Washington on Monday. The president assured attendees that his administration is “making tremendous progress” in combating inflation, while acknowledging that more work is needed.

The remarks came amid declining approval ratings and recent Democratic gains in state and local elections fueled by economic anxieties — particularly frustration over the rising cost of food and daily necessities.

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🔵 1 | Trump’s Inflation Message: Progress Claimed, No New Policy Details

Trump told the group that he is “fighting every day to support small businesses,” reiterating his promise from the 2024 campaign to lower household costs and restore purchasing power.

Key statements:

• Trump repeated claims that tax cuts and reshoring U.S. manufacturing will lift real incomes.
• He admitted that these effects “take time” to be felt.
• No new inflation-related policy measures were announced.

Instead, Trump mixed policy talking points with off-topic remarks, including:

• Military actions against Iranian nuclear facilities
• His personal affinity for McDonald’s food
• His renaming of the Gulf of Mexico

Several claims concerning the U.S. economic performance were false or misleading, according to fact-checkers.

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🔵 2 | Tariff Policy Under Scrutiny: Trump Shifts Position

For years Trump insisted his tariffs did not cause higher prices.
On Friday, however, he reversed course, admitting tariffs could raise costs “in some cases.”

New developments:

• Trump announced the removal of tariffs on over 200 imported food items, including coffee and bananas.
• He floated the idea of a $2,000 tariff-funded relief check for low- and middle-income Americans (requires congressional approval).
• He suggested 50-year mortgages to make homes more affordable — but those would result in higher lifetime interest payments.

This unusual policy pivot highlights mounting political pressure as consumers continue to feel squeezed.

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🔵 3 | Consumers Still Struggling With High Prices

The economic data paints a challenging picture for households:

Inflation data:

• CPI (Sept): 3% YoY — the highest since January.
• Over half of CPI categories rose more than 3%.
• Food at home: +2.7% YoY, the largest increase in over two years.
• Big Mac Index: $6.01 (July) → up from $5.69 last year and $5.15 three years ago.
• Ground beef: $6.33/lb → +13.5% YoY.

Consumer sentiment:

• Americans remain skeptical of Trump’s claims despite his insistence that inflation is lower than under Biden.
• Third-quarter earnings calls show widespread concern among CEOs regarding:
  • weakened household budgets
  • sharp income divides
  • reduced discretionary spending

Companies such as Procter & Gamble, Coca-Cola, and Colgate-Palmolive repeatedly highlighted the strain on low-income consumers.

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🔵 4 | McDonald’s Focuses on Value as Low-Income Consumers Feel Pain

McDonald’s CEO Chris Kempczinski recently warned that lower-income consumers are facing “significant inflation.”

To preserve affordability, the chain has:

• maintained a $5 value meal for more than a year
• increased promotional activity
• held key menu items stable in pricing

Given the strong price sensitivity of fast-food customers, McDonald’s is positioning itself aggressively toward value-oriented offerings.

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🔵 5 | Politics: Trump Enters Economic Campaign Mode

Two senior administration officials confirmed that Trump plans a series of economy-focused rallies in swing states ahead of the 2026 midterm elections.

His goals:

• reframe the inflation narrative in his favor
• reassure key voting blocs
• contrast his policies with Democratic positions
• mobilize grassroots support

Although inflation is indeed lower than the 2022 peak of ~9%, prices remain permanently elevated relative to pre-pandemic levels — a major challenge for political messaging.

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🔵 6 | CMB Market Interpretation

Fast-Food & QSR Sector

• Value meals are crucial to retaining core customers.
• Discounting will intensify through 2026.
• Beef and key inputs remain cost drivers.

Consumer Goods Sector

• Strong “trade-down” trend:
  • private label over brands
  • fewer discretionary food purchases
• Premium FMCG categories face volume pressure.

Political Risk

• Trump’s shifting tariff stance increases policy unpredictability.
• Removal of food tariffs may modestly ease retail prices.
• Tariff-funded checks remain unlikely.

Corporate Strategy

• Multinationals prepare for:
  • weaker real incomes
  • heightened discounting
  • lower brand loyalty

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🔵 7 | Outlook

Short-term (1–3 months):

• Commodity pressures (especially beef) remain high.
• Value-oriented offers in fast-food will expand.
• Inflation rhetoric will dominate political messaging.

Medium-term (3–12 months):

• U.S. economy likely in “low inflation, high prices” mode.
• Consumers will remain cautious with discretionary spending.
• Trump’s economic agenda will focus on manufacturing and tariffs.

Source: Reuters