Trump's Economic Approval Rating Falls to Record Low, Republicans Worry About Midterm Election Prospects

BlockBeats News, June 8th. The latest poll shows that due to the escalation of the Middle East situation and the resurgence of inflationary pressure, U.S. President Trump's approval rating on economic issues has dropped to the lowest level of his tenure, putting his long-standing "economic card" to the test.

The market generally expects that due to the Iran conflict and supply chain tensions, the U.S. inflation rate may return to the 4% level for the first time since 2023. Despite the White House's attempts to alleviate market concerns through tax cuts and emphasis on energy reserves, the ongoing rise in oil prices has weakened the effectiveness of related policies.

Trump recently stated that he will not adjust his Iran policy due to election pressure and downplayed the impact of price fluctuations, a move that has raised concerns among some Republicans. Former White House Chief of Staff Mick Mulvaney warned that if U.S. gasoline prices remain above $4 per gallon before Labor Day, the Republican Party's prospects in the midterm elections will face "significant trouble."

Treasury Secretary Besent believes that as the situation eases, energy prices will quickly retreat. However, Joseph Brusuelas, Chief Economist at RSM, said that even if the conflict cools down, damaged energy facilities and geopolitical risk premiums may still keep oil prices high, thereby continuing to squeeze consumer spending.

Despite the AI investment frenzy driving manufacturing expansion and the repeated record highs in the U.S. stock market, analysts point out that the U.S. economy is showing signs of a "K-shaped recovery," with the capital markets benefiting significantly while real household income has shrunk for the first time in nearly three years. Republican Senator Thom Tillis said that if they fail to address the cost of living pressures faced by ordinary voters, the Republican Party could suffer a severe blow in the November elections.

Analysts believe that against the backdrop of simultaneous economic growth slowdown and inflation rebound, if energy prices and the cost of living do not significantly decrease in the short term, the economic pressure caused by geopolitical conflicts may further evolve into political risks.