Midterm pocketbook pain bites Trump
President Trump's record is effectively on the ballot, and economic sentiment remains deeply depressed.
TL;DR
- Pay for rank-and-file workers has trailed inflation over the last five months.
- Consumer prices have risen over 5% since President Trump took office, with gas prices notably higher than last year.
- Mortgage rates are above 7%, and rates for credit cards and auto loans remain elevated.
- Consumer sentiment is at the second-lowest reading on record, a stark contrast to the strong sentiment during Trump's first term before the pandemic.
- Despite negative consumer sentiment, the economy is showing strong GDP growth (estimated at 5% pace this quarter) and historically low unemployment (4.1%).
- Technological advancements, such as the AI boom, are contributing to job anxiety among U.S. workers.
- The White House attributes economic resilience to tax cuts, job creation, and investment.