President Donald Trump and Republicans may be celebrating their economic record, but the optimism appears increasingly difficult to sustain, according to Bloomberg.

“[F]raming the economy as humming along is a risky gamble,” Bloomberg writer Josh Wingrove reported. The Internal Revenue Service issued roughly 99 million refunds this year, averaging $3,276 per refund, or about 12 percent more than last year. However, Wingrove noted that the savings were not distributed evenly.

Economists and analysts cited by Bloomberg say rising energy costs linked to Trump’s unilateral war on Iran have erased any cushion created by the tax cuts included in Trump and Republicans’ Big Beautiful Bill. The legislation passed under a cloud of controversy last year and continues to affect state legislatures. Critics have argued that its tax reductions are unbalanced and disproportionately benefit upper-income households.

“Gasoline prices, at about $4.30 a gallon on average, are at their highest ever for September — though Washburne said Sunoco has seen no dip in demand,” Bloomberg reported. “Diesel costs are at record highs and still climbing. And major food retailers like Conagra Brands Inc. and Campbell’s Co. say they plan to increase prices.”

Against that backdrop, Trump and Republicans are trying to assure voters that the economy remains on course and that the party should be given another opportunity to control the House and Senate and advance the president’s policies, as it did during his first two years in office.

“Still, a latent anxiety hung over [the RNC midterm celebration in] Dallas,” Wingrove wrote. “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.”

Wingrove added that voters’ views of an economy that is “growing and stable but expensive and inequitable” could determine the election results and, in turn, influence how much longer Trump can reshape the federal government.

Fuel prices continue to rise even after the summer travel season has ended, Bloomberg reported. Data released Friday also showed little progress on inflation during the previous month. Investors and economists said the figures would likely prompt the Federal Reserve to raise interest rates the following week, regardless of how strongly Trump might object publicly. The combination puts fuel and food costs, inflation data, consumer sentiment, and the Federal Reserve’s next rate decision at the center of the economic debate heading into the midterms.

“Consumer sentiment slid below estimates in September, with consumers expecting prices will continue to rise,” Wingrove wrote. Only 35 percent of Republicans surveyed by the University of Michigan said they believed the government was doing a good job with the economy, the lowest reading since Trump returned to the White House last year.

Wingrove said the figures may help explain why Trump’s speeches during the week included implicit acknowledgments that he needed to do more to reassure voters. The president said some victories could take time to materialize and raised the prospect of a $5,000 “Trump Dividend.”

Vice President JD Vance addressed public anger over housing costs in a Thursday speech and urged Republican voters to “stick with the party even if they don’t agree on everything,” according to Wingrove.

Source: Alternet.