'Worst Inflation Process in 48 Years': JD Vance Defends Trump Economy When Pressed on Higher Mortgage Rates

JD Vance said the Trump administration inherited 'the worst inflation process in 48 years' when CNN's Kaitlan Collins challenged him over household costs at an 8 October news conference. Collins asked why the administration deserved President Donald Trump's 'A+' economic grade when, she said, inflation, mortgage rates and gas prices were all higher than when he took office.

Vance opened his response by pointing to inherited inflation, then cited investment and manufacturing growth. He argued that the administration's economic policies would deliver benefits over time as companies built factories and recruited workers.

JD Vance's Inflation Claim in Context

'You have to remember that we inherited the worst inflation process in 48 years,' Vance said, according to journalist Aaron Rupar's caption of the exchange.

Vance did not specify the measure or period behind his 48-year comparison. Bureau of Labor Statistics figures show that consumer prices rose 9.1% over the 12 months ended June 2022, the largest 12-month increase since November 1981.

That peak preceded Trump's return to office by more than two years. Annual Consumer Price Index inflation was 2.9% in December 2024, before his inauguration, and 3.0% in January 2025.

The figures distinguish the earlier inflation surge from conditions around the beginning of Trump's second term. A lower inflation rate means prices are rising more slowly, rather than returning to their earlier levels.

Mortgage Rates Reach 7.40%

Collins's question connected the administration's economic assessment with household costs as the midterm elections approached.

The average US 30-year fixed mortgage rate was 7.40% in Freddie Mac's weekly survey released on 8 October, up from 7.28% the previous week. Reuters reported that it was the highest level since November 2023.

Vance's opening response addressed the administration's economic inheritance rather than the mortgage-rate comparison. His broader defence focused on investment and industrial expansion, whose benefits he said would take time to become apparent.

Vance Cites $19 Trillion in Investment

Vance cited $19 trillion (£14.44 trillion) in new US investment and pointed to manufacturing and factory construction as evidence of economic progress.

He said technology companies and other businesses were reinvesting in the country and contributing to its reindustrialisation.

CNN had previously challenged the same investment figure. In a fact-check published on 3 September, CNN reported that the White House had not explained the $19 trillion total and that its website instead listed $11 trillion (£8.36 trillion) in 'major investment announcements'.

Investment announcements or commitments are not equivalent to money already spent, and the two figures cannot be treated as verified totals of realised investment.

Vance nevertheless argued that Trump's policies would revitalise the economy, combining claims of existing progress with expectations of further gains.

Microsoft and Adobe Included in PERM Suspensions

The news conference also covered the administration's decision to suspend Microsoft, Adobe and six other companies from the Department of Labor's Permanent Labor Certification programme, known as PERM.

The other companies were Cognizant, Infosys, Tata, Wipro, HCL and Capgemini. Officials cited alleged fraud, while Microsoft and Adobe were also suspended amid multiple active federal investigations.

Under PERM, employers generally seek labour certification showing that there are not sufficient qualified, willing and available US workers for the relevant job. The process generally precedes petitions for employment-based green cards.

Labour Secretary Keith Sonderling said the department would neither accept new applications nor process pending applications involving the affected companies. Reuters reported that Microsoft did not immediately respond to its request for comment.

Vance Says Suspensions Could Continue Indefinitely

Vance said the action would last 'as long as it needs to', adding that the administration could maintain it indefinitely but wanted the companies to change their hiring practices.

He accused companies of disadvantaging American workers and described some foreign workers as 'indentured servants'. The administration cited alleged fraud and ongoing investigations as the basis for the action; the announcement did not establish that the affected companies had committed fraud.

Vance presented the crackdown alongside investment and manufacturing claims as evidence of the administration's economic direction. The distinction running through his defence was between benefits he said were developing and the household costs Collins had challenged him to explain.