Americans Lose Faith In The Economy As Optimism Gives Way To Worry In Trump’s First 100 Days – Financial Freedom Countdown

Public optimism about the U.S. economy has taken a sharp turn, with Gallup’s April survey revealing a substantial shift in sentiment. Several key indicators show that Americans are growing more pessimistic about both the national economy and their personal finances as their forecasts for inflation, interest rates and the job market have dimmed.

Optimism Fades Fast for Stock Market and Economic Growth

In January, the public leaned hopeful. But now, just months into President Trump’s return to office, those sentiments have reversed.

Only 29% expect the stock market to rise over the next six months, a dramatic fall from 61% earlier this year.

Similarly, optimism about U.S. economic growth has dipped from 53% in January to just 38% in April.

Most Say It’s a Bad Time to Find a Quality Job

Sentiment about the job market has also worsened. Gallup reports that 58% of Americans now say it’s a bad time to find a quality job; the most negative outlook recorded since January 2021. Just 38% still view it as a good time, down from 48% in January.

Personal Finances Hit a Record Low in Public Perception

Americans’ expectations for their personal finances have reached historic lows.

A record-high 53% now say their financial situation is getting worse; the highest level of personal pessimism since Gallup began tracking the data in 2001.

Gallup Finds Majority Now Say Their Financial Situation Is Worsening

For the first time since 2001, a majority of Americans believe their finances are on the decline.

This negative outlook cuts across income levels and includes both investors and non-investors. Even among those who consider their financial situation “good,” future expectations are dimming.

Trump’s Tariffs Rattle Markets and Sentiment in Equal Measure

April’s sour mood coincided with President Trump’s unveiling of sweeping new tariffs on April 2, dubbed “Liberation Day.”

The market responded with a swift 10% decline in the S&P 500. Though the indices have since bounced back, the psychological damage may be longer-lasting.

Stock Market Logs One of the Worst Presidential Starts in Modern History

Trump’s first 100 days back in office have marked one of the worst starts for a U.S. president in stock market history.

The S&P 500 dropped nearly 8% between January 20 and late April, rivaling declines seen during Gerald Ford’s early term after Richard Nixon resigned in 1974. The stock market’s weak showing under Trump ranks just above the early days of Franklin D. Roosevelt’s presidencies in 1933 and 1937, both marked by the depths of the Great Depression.

Inflation, Interest Rates, and Job Market Expectations Turn Darker

Expectations around inflation, interest rates, and unemployment have all trended negative.

A growing 63% believe inflation will increase in the next six months, while 47% expect unemployment to rise. Interest rate concerns also rose to 42%, up from more balanced views in January.

Consumer Confidence Index Sinks to 5 Year Lows

The Conference Board’s Consumer Confidence Index fell to 86.0 in April, its lowest point since May 2020.

The Expectations Index, a predictor of future economic activity, dropped to 54.4; a figure well below recession-signaling threshold of 80.

Economic Pessimism Reaches New Highs Across All Income Levels

Surprisingly, the negative sentiment isn’t concentrated among just low-income households. Gallup’s data show a uniform increase in pessimism across all income brackets and between stock owners and non-owners alike.

Republicans See Hope While Democrats Brace for a Recession

As is often the case, economic views have split along partisan lines.

Republicans and Republican-leaning independents remain largely optimistic, with 82% predicting the economy will be growing a year from now.

In contrast, 76% of Democrats foresee a recession or depression.

Nearly Half Expect the U.S. to Be in a Recession or Worse by 2026

A staggering 47% of Americans believe the country will be in either a recession (41%) or a depression (35%) by this time next year.

That’s the highest level of future economic pessimism Gallup has recorded since the financial crisis of 2008.

Economic Confidence Index Steadies, But Remains Deeply Negative

Gallup’s Economic Confidence Index (ECI) held at -22 in April, a marginal shift from March’s -20. While this might seem stable, it still reflects a deeply negative national mood and is far below December’s -14 reading, which came amid optimism about political transition after the election results.

Job Market Expectations Mirror Early 2020 Anxiety

Concerns about job availability now resemble those seen during the height of the 2020 crisis. The increase in Americans saying it’s a bad time to find work mirrors 2020 unemployment fears, despite a still-positive official job growth report in April.

Will Tariffs Pay Off or Backfire? Americans Remain Deeply Divided

The Trump administration insists that the new tariff regime is a long-term investment in America’s manufacturing strength. While Republican voters appear willing to weather short-term pain, many others are skeptical. Whether these policies will deliver future economic gains remains an open question; and one that continues to divide the nation.

As Americans Turn Sour on the Economy in April, Markets Rally as Bigger Picture Remains Murky

Gallup’s annual Economy and Personal Finance survey, conducted from April 1 to 14, took place mostly after President Donald Trump announced his “Liberation Day” tariffs on April 2. In the days that followed, markets saw sharp volatility, with major stock indices falling between 4% and 5% during the survey window.

Markets staged a comeback on Friday, with the S&P 500 closing the week at 5,687—slightly above its level before President Trump’s surprise tariff announcement on April 2. The Nasdaq and Dow also posted 1.5% and 1.4% gains respectively, marking the ninth consecutive day of growth for the S&P 500.

Boosting sentiment was a better-than-expected jobs report: the U.S. added 177,000 jobs in April, outperforming economist forecasts despite a dip from March’s 185,000.

Still, the rebound may be premature. Most of Trump’s aggressive 145% tariff plan on Chinese imports has yet to be fully felt, and April’s employment data likely doesn’t capture its broader economic ripple effects.

Meanwhile, GDP data shows a 0.3% contraction; the first since early 2022, clouding the picture.

While markets briefly cheered news that China may be open to negotiation, the path forward remains murky. More comprehensive data in the coming weeks could either confirm a shift in direction; or reinforce April’s gloom.

Like Financial Freedom Countdown content? Be sure to follow us!

While singles may have fewer Social Security filing options than married couples, smart planning around when to claim benefits can pay off for anyone, including those flying solo.

Maximize Your Benefits: Essential Social Security Strategies for Singles

The 9 States Taxing Social Security in 2024 and the 3 That Just Stopped

While many bask in the belief that their golden years will be tax-friendly, residents in specific states are facing a reality check as their Social Security benefits come under the taxman’s purview. Conversely, a wave of relief is set to wash over 3 states, marking an end to their era of taxing these benefits. This shift paints a complex portrait of retirement planning across the U.S., underscoring the importance of staying informed of the ever changing tax laws. Are you residing in one of these states? It’s time to uncover the impact of these tax changes on your retirement strategy and possibly reconsider your locale choice for those serene post-work years. Here are the states taxing social security benefits.

The States Taxing Social Security in 2024 and the 3 That Just Stopped

Shift From Employee to Investor Mindset with the Cashflow Quadrant Methodology by Robert Kiyosaki

Countless systems have been established that provide a much better understanding of what income generation is, how it can be used, and how individuals can organize their financial life as they work towards financial freedom. One of the more successful and better-known examples of financial education is the Cashflow Quadrant, the book by Robert Kiyosaki. Rich Dad’s Cashflow Quadrant was revolutionary for the way it organized money and helped people better learn how to increase their income. As the name implies, there are four quadrants within the Cashflow Quadrant. By mastering each of the four categories – or specializing in one – a person can increase their revenue stream and ultimately make more money.

Shift From Employee to Investor Mindset with the Cashflow Quadrant Methodology by Robert Kiyosaki

Retire Abroad and Still Collect Social Security? Avoid These 9 Countries Where It’s Not Possible

Dreaming of retiring to a sun-drenched beach or a quaint village? Many Americans envision spending their golden years abroad, savoring the delights of new cultures and landscapes. However, an essential part of this dream hinges on the financial stability provided by Social Security benefits. Before packing your bags and bidding farewell, it’s crucial to know that not all countries play by the same rules when it comes to collecting these benefits overseas. Here are the nine countries where your dream of retiring abroad could hit a snag, as Social Security benefits don’t cross every border. Avoid living in these countries so your retirement plans don’t get lost in translation.

Retire Abroad and Still Collect Social Security? Avoid These 9 Countries Where It’s Not Possible

Did you find this article helpful? We’d love to hear your thoughts! Leave a comment with the box on the left-hand side of the screen and share your thoughts.

Also, do you want to stay up-to-date on our latest content?

1. Follow us by clicking the [+ Follow] button above,

2. Give the article a Thumbs Up on the top-left side of the screen.

3. And lastly, if you think this information would benefit your friends and family, don’t hesitate to share it with them!