Tariff redo offers predictability without relief

To put it mildly, voters do not seem to care about those issues. They do care about their personal economic situation, which they overwhelmingly believe the current administration has made worse. A Washington Post/Ipsos poll last week showed only 33% of Americans approved of Trump’s economic stewardship.

A key part of this displeasure is very clearly down to prices. Just look at how consumer sentiment has swung around depending on the war with Iran. Reopening the Strait of Hormuz, crucial to the global flow of oil, has seemingly become the top objective, as any original goals fade in favor of cleaning up the consequences of the U.S.-instigated conflict.

Earlier this month — as a tentative ceasefire led to falling gasoline prices — consumers noticeably cheered up. The University of Michigan’s sentiment gauge, after tumbling at the war’s onset, hit its highest reading since February, and year-ahead inflation expectations fell to 4.2% from 4.6% in June. Now, as the situation in the Middle East deteriorates anew, prices at the pump are again climbing.