US President Trump's economic test and the 2026 midterm elections
While growth, the stock market, and investments in artificial intelligence continue in the US, voters' dissatisfaction is growing due to high inflation, rent, and gasoline prices.
In US President Donald Trump's second term, the economy has become the administration's most critical political and economic test ahead of the 2026 congressional midterm elections. While growth and artificial intelligence investments continue, high inflation and the slowdown in the job market are negatively impacting voters' pockets.
Economy and Midterm Elections
Congressional elections held two years after the presidential election in the US are referred to as midterm elections. In the elections on November 3, 2026, polls will be set up for the entire House of Representatives and approximately one-third of the Senate.
Positive Indicators
While signs of recovery are observed in the manufacturing sector of the US economy, investments in artificial intelligence and the rise in the stock market are cited among the strong sides of the economy. The administration presents these data as a success.
Inflation and Prices
In July, annual inflation remained at 3.7 percent, continuing to hover above the Fed's 2 percent target. The drop in inflation does not mean prices are getting cheaper; the burden on households continues.
Energy and Gasoline Costs
Gasoline prices hovering above 4 dollars per gallon directly affect daily living costs in a country where car use is widespread and increase transportation expenses.
Customs Tariffs
While customs tariffs applied to imported products aim to protect domestic production, they spark discussions that they increase company costs and bring an additional burden to the consumer.
Job Market and Debt
While 23 thousand jobs were lost in July, total public debt exceeded 40 trillion dollars, and the slowdown in the pace of job creation increased concerns.