Trump's Iran war and tax cuts erode US economy, approval at 33%
This digest was compiled by AI from multiple sources — links to the originals are below.
US President Donald Trump's approval rating has fallen to 33% as his Iran war and tax cuts fail to deliver promised economic relief. Long-term US borrowing yields hit a 19-year high on Tuesday, while public debt reached a record $40 trillion this week. Trump told South Carolina voters to back Republicans as if he were on the ballot, even as his administration's market interventions failed to calm investors.
Key Facts
- Trump's approval rating stands at 33% among US voters, according to Sozcu.
- Long-term US borrowing yields reached a 19-year high on Tuesday.
- US public debt hit a record $40 trillion this week.
- Treasury Secretary Scott Bessent announced a program to at least double long-term debt purchases.
- The budget deficit narrowed to 5.8% of GDP in fiscal 2025.
Economic Fallout
Long-term US borrowing yields hit a 19-year high on Tuesday as investors worried about the debt burden and dollar depreciation from the war. US public debt reached a record $40 trillion this week, with borrowing at its fastest pace outside the pandemic era. The budget deficit narrowed to 5.8% of GDP in fiscal 2025, but tax cuts are expected to widen it in coming years. Treasury Secretary Scott Bessent announced plans to at least double long-term debt purchases and reduce the deficit to calm markets. The intervention failed to lower Treasury yields and caused the dollar to lose value.
Political Pressure
Trump's approval rating has fallen to 33% among US voters, the lowest level of his presidency. At a South Carolina rally, Trump urged voters to back Republicans as if he were on the ballot, while supporting Darlene Graham's candidacy. Trump said he would do what it takes to win the election and warned that Congress would remove him if he lost. He asked, 'What do I need to do? Should I go back and bomb Iran a little more?' Cornell economics professor Eswar Prasad said Trump's angry statements and market interventions carry an air of desperation and worsen market sentiment.
3 sources
Trump's Iran war and tax cuts erode US economy, approval at 33%
