Economic Pressures Mount for Trump Ahead of Midterms

Economic instability is creating headwinds for Donald Trump as the United States approaches the 2026 midterm elections. A seven-month conflict with Iran has disrupted global oil prices, pushing national gasoline averages to nearly $4.50 per gallon and diesel above $6.50. These energy shocks have fueled inflation fears, driving 30-year mortgage rates above 7 percent and pushing government bond yields to 20-year highs.

In response to the volatility, Treasury Secretary Scott Bessent implemented a plan to buy back billions in federal debt to lower bond yields. President Trump briefly considered banning diesel exports to stabilize domestic costs, though the proposal drew criticism from conservative groups. Meanwhile, Kevin Hassett, Director of the White House National Economic Council, argued against further interest rate increases by the Federal Reserve System, which had raised rates in September to contain inflation.

President Trump maintains the economy remains a success, citing construction and AI-driven investment. He has dismissed the idea that the war with Iran will influence his electoral strategy, even as polls suggest voters increasingly blame him for the financial hardships.