Trump’s ‘Golden Age’ Confronts Economic Angst That Threatens GOP

(Bloomberg) -- The Republican faithful, gathered in arena hallways and hotel ballrooms during this week's midterm convention, projected confidence they had a good story to tell on the economy.

Some pointed to the steady unemployment rate and stock market growth as evidence of a new "Golden Age" driven by a resilient economy and American consumer, while others argued immigration and manufacturing policies were yielding a better life for US citizens.

Still, a latent anxiety hung over Dallas. The reality — that polls suggest voters are in fact quite anxious about the state of the economy, and preparing to punish Republicans in November's midterm elections — has become hard for even President Donald Trump to ignore.

Ultimately, the way voters feel about an economy that is a mess of contradictions - growing and stable but expensive and inequitable — seems likely to dictate the results of the vote, and, consequently, how much longer Trump can single-handedly reshape the federal government.

Fuel prices are surging up, despite the end of the summer travel season. Data out Friday showed little progress on inflation last month, which investors and economists say will likely lead the Federal Reserve to hike rates next week over Trump's public objections.

Consumer sentiment slid below estimates in September, with consumers expecting prices will continue to rise. Just 35% of Republicans in the University of Michigan survey believe the government is doing a good job with the economy, the lowest reading since Trump returned to the White House last year.

Peppered throughout the president's celebration of his second-term accomplishments was a growing, albeit, tacit admission of needing to do more to reassure voters: by acknowledging some victories could take time to manifest, and by dangling the prospect of a $5,000 "Trump dividend." Pressed as he departed the convention on why such a payment was necessary if the economy was thriving, Trump told reporters he intended it as a "reward" for those who had suffered during President Joe Biden's presidency. But he allowed that conditions hadn't immediately improved upon his taking office.