Mike Johnson urges patience on economy, says inflation not 'completely fixed yet'
WASHINGTON, DC: Hours before President Donald Trump was set to deliver his State of the Union address, House Speaker Mike Johnson struck a measured tone on the US economy.
Speaking on February 24, in an interview with ‘CBS Evening News’, Johnson argued the country is moving in the right direction but cautioned Americans not to expect instant results.
“Now, it takes a while to reverse that trend,” Johnson said. “You don't flip a switch right after the election, and it all just is fixed magically.”
Johnson says inflation easing, but recovery takes time
Johnson told the network he expects Trump to highlight economic gains during his speech, pointing to what he called 'the exciting facts about what we've been able to accomplish.'
The speaker acknowledged that inflation has not been fully resolved but emphasized the broader trend.
“It’s not completely fixed yet, but we are on the right trajectory,” Johnson said, noting that consumer prices rose 2.4% in the year ending in January and have hovered at 3% or below since mid-2024.
Johnson also argued Republicans 'inherited a real mess' when Trump returned to office, describing the economy during former President Joe Biden’s tenure as a 'disaster.'
Despite the administration’s optimism, recent polling shows many Americans remain unconvinced. A CBS News survey released on 24 February found just 37% of Americans believe the economy is in good shape, while 60% say Trump makes inflation sound better than it actually is.
Trade fights and tariffs remain flashpoints
Johnson also addressed the turbulence surrounding Trump’s tariff agenda after the Supreme Court of the United States ruled that many of the president’s sweeping import duties were unlawful.
He called the ruling 'a surprise' and 'a great irritation to the president,' while maintaining that 'it’s inarguable that the president’s approach to trade policy has worked for the country.'
Trump has since rolled out temporary global tariffs under a different legal authority, though they will expire in 150 days unless Congress acts. House Republicans remain divided on the strategy, with some GOP lawmakers joining Democrats to try to roll back certain tariffs earlier this month.
Economists have warned tariffs could slow growth and raise prices, but Johnson pushed back, insisting the US is moving in the right direction.
“America is back in many ways, and the economy is leading on that. Are we where we need to be? No. But are we on the right trajectory? Absolutely,” he said.
Speaker downplays fears over AI job losses
Beyond inflation and trade, Johnson addressed growing public anxiety over artificial intelligence.
A recent CBS poll found 62% of US adults expect AI to reduce job availability. Johnson, however, urged calm.
“We shouldn’t freak out,” he said, predicting the country will adapt. “We’re very vigilant about this, very sober-minded… we will stay ahead of China.”
He also said Congress should pursue a unified national framework for AI safety rules rather than allowing what he called a '50-state patchwork' of regulations.
Immigration tensions and Iran warnings ahead of speech
Johnson also touched on immigration enforcement, acknowledging some public concern that recent actions may have appeared 'overzealous.' Still, he defended the administration’s approach, saying the goal has been removing 'dangerous criminal illegals.'
He praised border czar Tom Homan for bringing 'calm' to the Minneapolis operation after bipartisan criticism.
Looking overseas, Johnson said Trump continues to emphasize diplomacy as the administration weighs possible military action against Iran over its nuclear program.
“We’re hopeful that the leaders of Iran will follow common sense,” Johnson said, adding he does not anticipate US troops being deployed on the ground.
Still, he delivered sharp rhetoric about Tehran, calling it 'the great agitator' in the Middle East and 'an avowed enemy of us.'