Axios: Trump’s 5-alarm economy

Posted on May 13, 2026 by michelleclarke2015
Trump’s 5-alarm economy
 
Photo illustration of President Donald Trump walking offscreen from a fire-ravaged dollar bill
Photo illustration: Sarah Grillo/Axios. Photo: Andrew Harnik/Getty Images
 
President Trump flew to Beijing today under some of the darkest economic clouds of his political career, departing a country reeling from the cost of everyday life, Axios’ Zachary Basu writes.

Why it matters: The bottom is falling out on Trump’s economic credibility — the central promise of his return to power. The inflation crisis that doomed his predecessor suggests he may not recover.

A new CNN poll found that 70% of Americans disapprove of Trump’s handling of the economy — a benchmark that never crossed 50% in his first term, even during the pandemic.

77% of Americans, including a majority of Republicans, say Trump’s policies have driven up the cost of living in their own community.

For now, Trump appears unconcerned, convinced that renewed inflation is temporary and that gas prices will plummet once he ends the Iran war.

Asked before departing for China whether Americans’ financial struggles were motivating his push for a deal with Iran, Trump replied: “Not even a little bit.”

“The only thing that matters when I’m talking about Iran is they can’t have a nuclear weapon,” he added. “I don’t think about Americans’ financial situation.”A line chart that tracks President Trump’s economic approval and disapproval ratings from Jan. 21, 2025, to May 12, 2026. Approval fell from 42% to 35.6%, near its 35.1% low. Disapproval rose from 36% to 60%, approaching its 61.5% high.Data: The Silver Bulletin. Chart: Noah Bressner/Axios

🖼️ The big picture: The affordability crisis that fueled Trump’s return to power has become a five-alarm threat to his presidency — even as GDP growth, largely thanks to the AI boom, remains strong on paper.

1. Prices are surging: Inflation spiked to 3.8% in April as the Iran war pushed the national average price of gas above $4.50 a gallon.

Economists fear the energy shock is beginning to ripple through the broader economy, pushing up the cost of groceries, airfare and electricity.

2. Paychecks are shrinking: Yesterday’s inflation report showed that prices are outpacing wages for the first time in three years, erasing gains in real purchasing power.

American households have absorbed a nearly 30% rise in consumer prices since the pandemic — a cumulative wound that has never fully healed, Axios’ Courtenay Brown reports.

3. Debt is mounting: Americans are increasingly leaning on credit cards and loans to absorb rising costs, with consumer borrowing posting its biggest monthly jump in March since late 2022.

The personal savings rate fell to 3.6% in March, its lowest level since 2022, as lower-income households burn through savings to cover essentials.

4. Confidence is collapsing: Consumer sentiment has cratered to record lows as Americans grow pessimistic about the economy and their own financial futures.

A new YouGov/Economist poll found 59% say the economy is getting worse, while just 15% say it’s improving. More than two-thirds of Americans say the country feels “out of control.”

5. Main Street is souring: The National Federation of Independent Business says optimism around future business conditions and expansion plans has fallen to its lowest level since before Trump’s reelection.

Small businesses are often treated as an economic early-warning system because they’re especially vulnerable to rising fuel costs, tighter credit and weakening consumer demand.Share this story.

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About michelleclarke2015

Life event that changes all: Horse riding accident in Zimbabwe in 1993, a fractured skull et al including bipolar anxiety, chronic fatigue …. co-morbidities (Nietzche 'He who has the reason why can deal with any how' details my health history from 1993 to date). 17th 2017 August operation for breast cancer (no indications just an appointment came from BreastCheck through the Post). Trinity College Dublin Business Economics and Social Studies (but no degree) 1997-2003; UCD 1997/1998 night classes) essays, projects, writings. Trinity Horizon Programme 1997/98 (Centre for Women Studies Trinity College Dublin/St. Patrick's Foundation (Professor McKeon) EU Horizon funded: research study of 15 women (I was one of this group and it became the cornerstone of my journey to now 2017) over 9 mth period diagnosed with depression and their reintegration into society, with special emphasis on work, arts, further education; Notes from time at Trinity Horizon Project 1997/98; Articles written for Irishhealth.com 2003/2004; St Patricks Foundation monthly lecture notes for a specific period in time; Selection of Poetry including poems written by people I know; Quotations 1998-2017; other writings mainly with theme of social justice under the heading Citizen Journalism Ireland. Letters written to friends about life in Zimbabwe; Family history including Michael Comyn KC, my grandfather, my grandmother's family, the O'Donnellan ffrench Blake-Forsters; Moral wrong: An acrimonious divorce but the real injustice was the Catholic Church granting an annulment – you can read it and make your own judgment, I have mine. Topics I have written about include annual Brain Awareness week, Mashonaland Irish Associataion in Zimbabwe, Suicide (a life sentence to those left behind); Nostalgia: Tara Hill, Co. Meath.
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