Trump approval rating on economy craters amid tariff and Iran war fallout

President Donald Trump's approval rating on the economy has cratered to new lows, according to recent polling data, as the combination of sweeping tariffs and the ongoing military conflict with Iran erodes public confidence in his economic stewardship.

The sharp decline in approval comes despite the Republican Party's traditional focus on economic competence and Trump's own campaign promises to bring down inflation. The Iran war, which began earlier this year, has compounded the negative effects of the tariff regime, driving up energy costs and disrupting supply chains. The result is a deteriorating economic outlook that has even prompted some Republican lawmakers to discuss a new package of economic measures. However, passing such legislation faces significant hurdles given the party's razor-thin majorities and internal divisions, with Trump and his allies having defeated several long-time Republicans in primaries, leaving them as lame-duck opponents within the party.

For interest rate traders, the political turmoil adds another layer of uncertainty to the macroeconomic outlook. A weakening economy and rising fiscal spending pressures could influence the Federal Reserve's policy path, potentially leading to rate cuts if growth slows further. However, the inflationary impulse from tariffs and higher energy prices complicates the Fed's dual mandate. NowPrice's live rates and charts show how markets are pricing in these crosscurrents. Investors should watch for any concrete fiscal stimulus proposals from Republicans, as well as upcoming inflation and jobs data, which will provide clearer signals on the direction of monetary policy.