Only 17% of Americans Approve of Trump's Handling of the Cost of Living
The cost-of-living number is brutal. A new AP-NORC poll finds that only 17% of U.S. adults approve of Trump's handling of the cost of living.
The Numbers
The poll, conducted September 24-28 among 2,140 adults, shows a public that is fed up with prices.
About half of U.S. adults now say they are extremely or very concerned about being able to afford gas, up from 39% in July, and about half say the same about food.
About 7 in 10 Americans say Trump's handling of the cost of living has been "worse than expected," including roughly half of Republicans. And 65% now blame Trump's policies more than outside factors for persistently high costs.
The tariff backlash is growing. 64% say Trump has "gone too far" on imposing new tariffs, up from 58% in January. Only about 3 in 10 approve of how he is handling trade negotiations.
Even Republicans are cracking. About 6 in 10 Republicans disapprove of his handling of the cost of living, up from about half in April.
The Inflation Backdrop
The latest official data backs up the frustration. August PCE, released September 30, came in at 3.4% year over year, with core PCE at 3.0%.
The Fed responded by hiking rates to a range of 3.75% to 4.00% in September, its first hike in three years. The next FOMC decision lands October 28-29, and September CPI drops on October 14. Inflation is still running well above the Fed's 2% target, and the path from here is anything but settled.
What It Means for Consumer Stocks
When half the country is worried about affording gas and groceries, discretionary spending is the first thing to crack. Retail and restaurant earnings season will show exactly how much pain consumers are feeling.
Stocks to watch:
- WMT and COST: trade-down beneficiaries when shoppers hunt for value.
- TGT and DG: discount retail is where squeezed consumers land.
- AMZN and HD: big-ticket discretionary is where the slowdown shows up first.
- MCD: even fast food is a read on how stretched the consumer really is.
Options Market Angle
Consumer names often see put buying when sentiment cracks, and retail earnings in the coming weeks will be the proving ground. If big-box retailers guide lower on traffic or ticket size, expect fast downside repricing.
On the flip side, discount and staples names can catch defensive call flow as money rotates away from discretionary. Watch positioning in WMT and COST against TGT and DG for the trade-down trade.
Track consumer sentiment headlines on Unusual Whales news.