Johnson reveals what he says is holding Trump's economy back
WASHINGTON, DC: House Speaker Mike Johnson said the Iran conflict has become the biggest obstacle facing the US economy, arguing that higher transportation, oil and gas costs could continue affecting grocery and fuel prices until the conflict settles down.
Speaking during an interview with Fox, Johnson was asked about young Americans who remain frustrated by the cost of buying homes, accessing health care and managing everyday expenses. He argued that Republicans' economic approach offered an alternative to greater government control, while pointing to the Iran conflict as the main economic challenge facing the administration.
Johnson said Congress had put in place what he described as the necessary economic conditions for growth, claiming the economy had begun responding before the conflict with Iran created a new challenge.
Johnson points to Iran pressure
Johnson said the economy was beginning to "take off like a rocket" in the first quarter of the year before the US entered the conflict with Iran.
Mike Johnson: "We put in this Congress into place all the economic conditions to let the economy take off like a rocket, and beginning in the first quarter of this year that's what was happening, and then we got into the conflict with Iran ... that's the big headwind we have… pic.twitter.com/HFTwc4jbA0
— Aaron Rupar (@atrupar) August 15, 2026
"Now, that's going to be settling out soon," Johnson said, arguing that a reduction in tensions would help bring fuel-related costs down.
He specifically linked transportation expenses to oil and gas prices, saying those costs can affect the price of goods before they reach consumers.
"That will help gas prices and grocery prices stay down to planet Earth because of the transport cost and all that related to fuel and the price of oil and gas," Johnson said.
He described the Iran conflict as "the big headwind we have right now", while maintaining that Republicans had delivered on the economic commitments they had made.
Johnson's comments put fuel, transportation and grocery costs at the center of his explanation for why Americans may still be feeling economic pressure despite the administration's broader claims about economic progress.
Speaker defends Republican approach
The discussion began with a question about younger Americans who feel they have been failed by the economy and may find socialist policies appealing because of difficulties affording housing and health care.
FOX NEWS: If you're a young person and you're disenchanted, you can't afford a home, you're having trouble with healthcare and you feel failed by the economy, what is the Republican alternative?
— Aaron Rupar (@atrupar) August 15, 2026
MIKE JOHNSON: Well, the answer is not to turn everything over to the government,… pic.twitter.com/iFqL8f1UxC
Johnson rejected greater government control as the answer, arguing that expanding the government's role would increase costs rather than reduce them.
"The answer is limited government and individual freedom and the rule of law," Johnson said, describing those principles as central to the Republican approach.
He argued that government control "drives prices up" and said it could lead to wider economic hardship.
Johnson also said Congress had already acted on the administration's economic priorities before the Iran conflict became a major obstacle.
"We have done what we said," Johnson said. "We fulfilled our promises."