Trump's Policies Fuel Economic Concerns and Voter Disapproval
Despite a modest approval rating, President Trump's second term has raised red flags for voters and markets. The following factors indicate a growing skepticism towards Trump's economic policies:
Declining Business Confidence:
The National Federation of Independent Business's confidence index plummeted in January, after a brief uptick attributed to Trump's actions. Economists cite the chaos surrounding Trump's policies, including tariffs and regulatory uncertainty, as contributing to this decline.
Weakening Voter Approval:
According to Morning Consult, Trump's approval rating on the economy has significantly declined over the past three weeks, especially in areas such as trade and taxes. Voters' expectations for lower prices under Trump's administration remain largely unmet.
Inflation Fears:
University of Michigan's sentiment index reveals that Americans now anticipate higher inflation rates (4.3%) in the next 12 months, primarily due to concerns over Trump's tariffs. These concerns are supported by evidence from Trump's previous trade wars, which have led to increased costs without commensurate benefits.
Market Volatility:
Investors anticipate adverse reactions to Trump's economic plans, such as stock sell-offs and declining business sentiment. Some experts suggest Trump may soften his stance to mitigate these responses. However, the negative impact may already be evident, with businesses and consumers expressing growing reservations about Trump's policies.