73% of Americans disapprove of President Donald Trump's handling of the economy, the lowest rating for either the current president or his predecessor, Joe Biden, according to the latest AP-NORC survey. This sharp decline in support occurs even as macroeconomic indicators show a strong and accelerating economy, creating a widening gap between statistical performance and voter sentiment with less than a month remaining until the midterms.
The disconnect is driven primarily by consumer prices. In a recent CBS News poll, 91% of respondents identified "prices" as the factor they consider when rating the economy. Consequently, 38% of voters described their personal finances as fairly or very bad. This perception aligns with the fact that inflation has outpaced wage growth for months, a dynamic that National Economic Council Director Kevin Hassett acknowledged on CNN's "State of the Union." Hassett noted the dilemma of defending strong economic data without appearing insensitive to voter struggles, arguing that consumer spending and default data suggest actions speak louder than negative polling.
The erosion of support is particularly steep among Republicans. University of Michigan data indicates that Republican sentiment is declining at its fastest rate since the Great Financial Crisis. Additionally, 69% of survey respondents said Trump's handling of cost-of-living issues has been worse than they expected during his second term. The Conference Board's consumer confidence index has also fallen to a 12-year low, underscoring the pessimistic mood among the public despite stable labor markets and rising lower-end wages.
Treasury Secretary Scott Bessent stated on "The Axios Show" that the administration would not repeat what he described as the Biden-era mistake of telling people how to feel about the economy. However, Trump himself recently criticized Republicans for not doing enough to improve economic messaging. The administration's current strategy appears to rely on large fiscal promises, including a proposed $5,000 check for every adult citizen if Republicans win the midterms, a $1.3 trillion initiative that most observers do not believe will be paid. Trump also promised $2 billion in Medicare rebates for seniors, a sum equivalent to approximately two weeks of premium payments.
Krishna Guha, head of economics at Evercore ISI, described the current economic environment not as K-shaped, but as a "gator economy." He explained that this model resembles an alligator's mouth, where the bottom remains flat while the top points skyward, poised to chomp. This characterization suggests that while an AI-fueled boom drives overall growth, it is leaving many ordinary Americans behind. The result is a political reality where strong Bureau of Economic Analysis data fails to influence voters who are judging the administration by their personal financial experiences.