Fox News calls the economy 'possibly a disaster' as Trump's approval drops to 30% — here's what could save Republicans

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When even Fox News analysts start saying the U.S. economy is "possibly a disaster" (1), the honeymoon phase is clearly over.

That kind of on-air bluntness isn't just background noise — it's a warning sign for a White House that has used the economy as its invincible political shield.

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The latest data from AP-NORC Center for Public Affairs Research polling (2) shows exactly why panic is setting in. President Donald Trump's approval rating on the economy has fallen sharply, dropping to 30% from 38% in March.

Even worse? A little more than three-quarters (76%) of Americans now disapprove of how he's handling the cost of living. Voters aren't just "dissatisfied." They're feeling the pinch at the pumps and in the grocery aisles, and they want someone to blame.

For many households, that frustration shows up in small, daily decisions — skipping takeout, delaying big purchases or cutting back on essentials that once felt routine.

"Inflation fatigue" has become a genuine political liability. With the conflict in Iran pushing gas over $4 a gallon and inflation jumping to 3.3% in March (3), the administration's "golden age" is starting to sound out of step with daily life.

That disconnect between messaging and reality is becoming harder to ignore as price pressures linger month after month.

The 1 key figure that may save Republicans

The latest inflation numbers show that, for voters, the Consumer Price Index (CPI) (4) data is far less important than the cost of daily necessities. In other words, people aren't tracking economic trends — they're tracking what it costs to live week to week.

While April's CPI report suggests inflation isn't accelerating quite as fast, that cooling hasn't brought any real relief to bank accounts. For the GOP, that $4-a-gallon gas mark can be dangerous, because when gas stays under $4, the economy feels noticeably more manageable for many Americans.

Once it crosses that line, frustration spikes — especially in the suburbs and working-class swing districts that decide elections. Those areas tend to be especially sensitive to commuting costs, where even a modest rise in fuel prices can ripple quickly through household budgets.

The stakes are higher than just polling numbers, too. The real question is whether the GOP can stabilize the cost of living. If gas prices stay steady, they might survive this recent turn. But if fuel costs continue to creep up, it feeds the narrative that household budgets are still underwater, no matter what the data says.

Most Americans still rate the economy as fair or poor (5), showing how fragile consumer confidence really is. Voters are simply reacting to three years of price shocks. That kind of sustained pressure can reshape expectations, making even modest improvements feel insignificant.

For Republicans, the challenge isn't just "improving the numbers" — it's convincing voters that those improvements are showing up where it matters most: in everyday expenses, like the cost to fill your tank.

Read More: Robert Kiyosaki warned of a 'Greater Depression' — with millions of Americans going poor. Was he right?

The deeper cracks

The White House keeps touting an "economic boom," (6) but the aforementioned AP-NORC poll tells an entirely different story.

The poll shows that economic sentiment has continued to slide, with 73% of Americans now saying the economy is in "poor" shape, up from 66% in February (2). The increase suggests a growing sense of frustration, with negative views clearly outweighing more positive assessments of current conditions.

Most Americans aren't buying the hype because they're still being hammered at the grocery store (7) and the gas pump.

There's also a massive chasm between policy slogans and the actual lived experience of someone trying to pay rent. For renters in particular, rising housing costs (8) have compounded the broader inflation problem, leaving little room for financial breathing space.

Even as president, Trump is finding that voters don't care about White House talking points — they care about the weight of years of inflation. Until those receipts come down, the administration's approval will likely keep sinking.

For Republicans, the challenge is not just improving the numbers. It's convincing voters that those numbers are real enough to feel in their day-to-day lives.

Recession risks are uncomfortably high

With the war now stretching beyond two months, economists are increasingly warning that the U.S. economy may be inching closer to a recession.

Several major financial firms have already raised the alarm. Moody’s Analytics now sees a 48.6% chance of a recession over the next 12 months. Goldman Sachs recently lifted its forecast to 30%, while Wilmington Trust estimates the odds at 45%. EY Parthenon placed the risk at 40% — but warned it could climb quickly if tensions in the Middle East worsen or drag on longer than expected (9).

The fallout may not stop there. If oil prices continue climbing, inflation could stay stubbornly elevated — potentially forcing the Federal Reserve to keep interest rates higher for longer instead of cutting them later this year.

Prepare your finances now

Even as Wall Street has largely brushed off the conflict so far, some analysts argue that it could still be a cause for concern.

“We think oil should be higher and the equity market should be a lot, lot weaker,” said Amrita Sen, founder and director, market intelligence at Energy Aspect, adding, “I think we’re sleepwalking into potentially a pretty big recession (10).”

This might serve as a reminder not to rely too heavily on stocks alone. Diversifying part of your portfolio into assets that have historically acted as hedges during downturns could help cushion against volatility if economic conditions deteriorate.

A precious metal safe haven

When recession fears start building, gold tends to shine. The precious metal has long been considered a go-to safe haven because its value isn’t directly tied to the stock market or the strength of any one economy.

If you’re worried about losing money during a downturn, gold can cushion your landing. It tends to preserve its value better than fiat currency — like the U.S. dollar — and can work as a hedge when used as one part of a well-diversified portfolio.

One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with Goldco.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you’re not sure how the precious yellow metal could fit into your portfolio, you can download your free gold and silver information guide today to learn more.

Add real estate to the mix

Another way investors try to shield their portfolios from economic turbulence is through real estate. Property prices generally don’t fluctuate as sharply as stocks, which can help smooth out volatility during rocky market periods.

At the same time, rental properties can provide a stream of passive income even when broader markets are under pressure — making real estate appealing for investors looking for both stability and cash flow.

Of course, not everyone wants the responsibility that comes with owning and managing rental properties directly.

For those who want exposure to real estate without the hassles of becoming a landlord, there are alternative ways to tap into the market.

With a minimum investment of $25,000, accredited investors can access institutional-grade multifamily real estate investments in high-growth markets through Bonaventure.

Bonaventure manages the properties itself — removing many of the headaches traditionally associated with real estate investing. It also offers educational resources to help investors evaluate opportunities and better understand the multifamily market before diving in.

The company focuses on income-producing apartment communities, which can offer investors a stream of passive income while potentially benefiting from long-term appreciation. Bonaventure also offers tax-advantaged investment structures like 1031 exchanges and UPREITs.

Sign up today, and you can explore your options and construct your real estate portfolio.

Those looking to further diversify their portfolios may also consider private real estate platforms focused on income-producing properties in different verticals. After all, residential real estate — multifamily or no — is only one possible investment.

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.

With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.

A finer alternative for your portfolio

Stocks have been on a rollercoaster as the Iran war continues to weigh on sentiment. Even though headline indexes have bounced back, investors are starting to focus on a bigger issue quietly building underneath: stretched valuations.

The Shiller P/E has surged above 40x — a level last seen in 1999 during the dot-com boom — a signal that forward returns for the S&P 500 may not be as strong as they’ve been in recent years.

With these warning signs, diversification isn’t just smart — it’s essential. Billionaires like Jeff Bezos and Bill Gates continue to invest heavily in stocks, but they also carve out a portion of their portfolios for assets that behave differently from the market.

One standout example: post-war and contemporary art, which outpaced the S&P 500 by 15% from 1995 to 2025 while showing near-zero correlation to traditional equities.

Until recently, this world was off-limits. Now, with Masterworks, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.

Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6% and 17.8%.

Moneywise readers can get priority access to diversify with art: Skip the waitlist here

Note that past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com/cd

— With files from Laura Grande

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Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

@DemocraticWins/X(1); AP-NORC Center for Public Affairs Research(2); U.S. Bureau of Labor Statistics(3),(4); University of Massachusetts Amherst(5); Cointelegraph/Facebook(6); NBC News(7); Newsweek(8); CNBC (9), (10)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.