Trump's economic approval rating falls to a new low during his term, and Republicans worry about the prospects of the midterm elections BlockBeats News: On June 8th, the latest poll showed that due to the escalation of the Middle East situation and the rebound of inflation pressure, US President Trump's approval rating on economic issues has dropped to the lowest level since his current term, and his long-standing "economic card" is facing a test. The market generally expects that due to the impact of the Iran conflict and supply chain tensions, the US inflation rate may return to 4% for the first time since 2023. Despite the White House's attempts to alleviate market concerns by increasing tax refunds and emphasizing energy reserves, the continued rise in oil prices has weakened the effectiveness of related policies. Trump recently stated that he will not adjust his policy towards Iran due to election pressure and downplay the impact of price fluctuations, which has raised concerns among some Republicans. Former White House Chief of Staff Mick Mulvaney has warned that if US gasoline prices remain above $4 per gallon before Labor Day, the Republican Party will face "huge trouble" in the midterm elections. Finance Minister Besent believes that as the situation eases, energy prices will quickly fall back. However, Joseph Brusuelas, Chief Economist of RSM, stated that even if the conflict cools down, damaged energy facilities and geopolitical risk premiums may still keep oil prices high, thereby continuing to squeeze consumer spending. Despite the AI investment boom driving manufacturing expansion and the US stock market hitting new highs, analysts point out that the US economy is showing a "K-shaped recovery" pattern, with significant benefits to the capital market, while the real income of ordinary households has shrunk for the first time in nearly three years. Republican Senator Thom Tillis said that if they cannot respond to the cost of living pressures faced by ordinary voters, the Republican Party may suffer a serious blow in the November elections. Analysis suggests that in the context of a slowdown in economic growth and a rebound in inflation, if energy prices and living costs cannot significantly fall in the short term, the economic pressure caused by geopolitical conflicts may further evolve into political risks. [Original link]