Trump shrugs off rising inflation as war deepens economic spiral

President Trump flew to Beijing on Tuesday under some of the darkest economic clouds of his political career, leaving behind a country reeling from the cost of everyday life. 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. Driving the news: 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." 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 , fueled largely by 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, electricity and other essentials Americans rely on every day. 2. Paychecks are shrinking: Tuesday'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 rise o...

Original source: Axios