As US midterm elections approach, Trump’s approval falters

Americans increasingly disapprove of President Trump’s performance as the midterm elections approach. Inflation remains elevated amid the Iran war, and electricity prices are on the rise as a side effect of the AI boom. Many households feel left out of the tech-centric growth story.

The November vote midterms could result in the Democrats taking control of the House of Representatives and potentially the Senate as well. Divided government would derail much of Trump’s economic and trade agenda; on the upside for bond investors, legislative gridlock historically tempers spending expectations and could calm Treasury markets.

The University of Michigan‘s consumer sentiment surveys show Americans are at a historically pessimistic moment when it comes to their personal finances. Housing affordability remains a major challenge.