Americans turn against Trump economy as affordability crisis deepens

Trump economy under pressure

Recent University of Michigan surveys show American consumer sentiment slipping for a third consecutive month, signaling a waning confidence in the Trump economy. Retail sales, a bellwether of household spending, dropped ↓ 2.5% in June, the steepest decline since 2020. The downturn coincides with escalating tensions in the Middle East; the Reuters report links the Iran conflict to rising fuel import costs, further straining budgets.

“Households are feeling the squeeze, and the political narrative is no longer enough to mask the pain,” said a senior economist at Bloomberg.

Inflation remains above the Federal Reserve’s 2% target, with core CPI at ↓ 0.3% month‑over‑month, while wages lag behind price hikes. The convergence of geopolitics and domestic policy is reshaping the outlook for the Trump economy, prompting analysts to revise growth forecasts downward.

Dispatch from: Victor Hale

Equities & Market Dynamics Analyst