Rising costs and weak incomes create major political challenge for Trump

For months, Americans have been expressing frustration with the stubbornly high cost of living.

But economists say a more troubling change is emerging. Consumers are increasingly reporting that their income is not keeping pace with the financial pressures they face.

Joanne Hsu, Director of Consumer Research and Chief Economist at the University of Michigan, says that the change has become clearer in recent readings.

“Consumers have been expressing frustration with consistently high prices for the past few years. What’s different about this season is that consumers are also increasingly talking about dwindling incomes,” Hsu told Fox News Digital.

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“This year, they are reporting strains on their wallets from multiple sources.”

This sense of increasing pressure is supported by recent analysis.

according to Bank of America InstituteSince January 2025, inflation has risen faster than the after-tax wages of middle- and low-income households.

As a result, nearly a quarter of U.S. households currently live paycheck to paychecka number that has increased over the past year.

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What this means is that the erosion of purchasing power is pushing more Americans to the edge of their budgets, making it harder to keep up, let alone get ahead.

Americans say it’s hard to survive financially, let alone get ahead. (iStock)

This growing tension poses a political challenge for the President Donald TrumpThose who returned to the White House with the promise of more affordability. Now he faces voters’ doubts about whether he can pull it off.

A. Fox News national survey It shows that 76% of voters now rate the economy negatively; That’s up sharply from 67% in July and 70% at the end of former President Joe Biden’s term.

Trump’s economic approval has also fallen to a new low, and his overall job approval has reached a record level of disapproval even among voters who have historically supported him.

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President Donald Trump is grappling with the affordability issues that plagued former President Joe Biden’s administration. (Aaron Schwartz/CNP/Bloomberg via Getty Images)

For now, the daily reality for many Americans remains the same: Prices are too high, paychecks are too weak, and confidence in the future is fragile.

How quickly this situation changes, and whether voters give Trump credit for it, could set the tone for the country’s economic and political debates in the coming months.