Foreign governments reduced their holdings of U.S. Treasurys in March, a trend driven by the Middle East war and its impact on global energy prices. Central banks, particularly in Asia, liquidated dollar reserves to defend their local currencies against a significant energy shock that caused exchange rates to fall. This sell-off, with major holders like China and Japan cutting their positions, reflects both currency intervention needs and tactical portfolio adjustments amid market volatility and rising inflation fears.
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President Donald Trump dismissed rising gas prices as “peanuts,” despite new polling indicating his economic approval rating has fallen to a new low of 37 percent. This disconnect highlights mounting pressure on the White House as inflation and fuel costs remain elevated, impacting voter sentiment ahead of upcoming elections. While Trump stated his focus is on preventing Iran from obtaining nuclear weapons, analyses of economic polling suggest his handling of inflation is viewed more negatively than at any point during his or Joe Biden’s presidency. The article notes that there is little immediate relief in sight for drivers, with fuel prices remaining elevated due to the ongoing conflict with Iran and global oil supply disruptions.
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This article highlights Donald Trump’s reiterated stance that the financial well-being of everyday Americans is not a primary consideration in his foreign policy decisions, a sentiment he described as a “perfect statement.” Despite public concern over soaring gas prices, which have more than doubled since February, Trump maintained that Americans would endure “short-term pain.” While acknowledging supporter complaints about unfulfilled promises regarding war and cost of living, the president pointed to record-high stock market prices and employment figures as indicators of success. This comes in the wake of inflation data showing a significant spike in the Consumer Price Index and reports indicating widespread public blame on the president for the rising costs of essentials.
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This analysis, drawn from a recent Atlas poll of 2,069 U.S. residents conducted between May 4-7, 2026, highlights key shifts in public sentiment. The poll, which carries a margin of error of +/-2%, reveals significant trends that are shaping the current political landscape. These findings offer a snapshot of the prevailing mood among the electorate, informing the ongoing discussions within the public sphere.
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Kevin Warsh has been confirmed as the new Federal Reserve chair, succeeding Jerome Powell in a confirmation vote that marked the most divisive for a Fed chair. Warsh takes the helm amid President Trump’s calls for lower interest rates, a stance complicated by recent inflation data. Powell will remain as a Fed governor, having served as chair since 2018, with Warsh’s appointment concluding a lengthy search for a successor.
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A recent CNN poll reveals widespread American pessimism regarding the economy, with a significant majority believing high prices and the cost of living are their top financial concerns. This sentiment stems from a feeling of being stuck, rather than getting ahead, as wages for many have failed to keep pace with inflation. Consequently, most Americans feel it is a better time to save than to spend, and there is a prevailing belief that the economic system unfairly favors powerful interests.
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In April, U.S. consumer prices rose at a faster-than-anticipated 0.6%, bringing the annual rate to 3.8% and signaling persistent inflation concerns. Energy prices were a significant driver, accounting for over 40% of the monthly increase with a 3.8% jump, while food prices also climbed 0.5%. Core inflation, excluding volatile food and energy, rose 0.4% monthly and 2.8% annually, remaining well above the Federal Reserve’s target and indicating broader inflationary pressures beyond energy, as seen in rising shelter and apparel costs.
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For the first time in three years, Americans’ wages are no longer outpacing inflation, as prices rose 3.8% annually, driven by an energy price shock following recent geopolitical events. This surge in costs, combined with a 0.6% monthly increase in consumer prices, has resulted in inflation-adjusted wage growth turning negative. Contributing factors to the overall inflation rise include a significant jump in energy prices and a methodological adjustment in shelter costs, which had previously understated inflation due to a government shutdown’s impact on data collection.
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While some economists argue that Liberation Day tariffs have significantly boosted government revenue, others contend that they have inflicted substantial damage on the U.S. economy, particularly concerning consumer health and job growth. Data indicates a slowdown in real consumer spending and an acceleration of inflation, directly contradicting claims that supply-side shocks do not cause sustained inflationary pressures. Furthermore, the constitutionality of these tariffs has been challenged, with potential implications for revenue redistribution, while a new oil supply shock from the Iran conflict threatens to exacerbate existing economic vulnerabilities.
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President Trump has claimed gas prices are “way down” and will fall further after the Iran war concludes. However, data indicates that national average gas prices have risen significantly, exceeding $4.50 a gallon, with California experiencing prices over $6. Transportation Secretary Sean Duffy also stated that oil prices have dipped below $100 a barrel, encouraging summer road trips, though the lag effect on pump prices was noted. These higher costs impact not only gasoline but also jet fuel, increasing airfare prices by approximately 20 percent in recent months.
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John Q. Hosedrinker
Trump Transportation Secretary Praises $4.50 Gas Prices, Urges Road Trips
President Trump has claimed gas prices are “way down” and will fall further after the Iran war concludes. However, data indicates that national average gas prices have risen significantly, exceeding $4.50 a gallon, with California experiencing prices over $6. Transportation Secretary Sean Duffy also stated that oil prices have dipped below $100 a barrel, encouraging summer road trips, though the lag effect on pump prices was noted. These higher costs impact not only gasoline but also jet fuel, increasing airfare prices by approximately 20 percent in recent months.
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