The U.S. economy saw a modest contraction in 2025, with deficit reduction remaining a top priority to achieve a sub-3% deficit-to-GDP ratio by 2026. Tariff policies are being leveraged not only for trade rebalancing but also to generate revenue for deficit reduction, supported by executive authority under Section 301 and IEEPA, though facing potential legal scrutiny. Inflation is cooling due to lower energy and housing costs, improving real incomes despite data skepticism. The Federal Reserve’s prolonged low-rate environment since 2008 is criticized for fueling a 15-year asset bubble that favored wealthier investors, prompting calls for structural reform such as ending the dot-plot and reducing the Fed’s market involvement. To strengthen Main Street, the government plans equity stakes in strategic sectors like semiconductors and pharmaceuticals, moving beyond free trade orthodoxy. Additionally, upcoming tax cuts and the introduction of Trump accounts aim to boost capital investment, wage growth, and broad-based equity ownership, fostering long-term financial inclusion.