News · smh.com.au

US midterm elections 2026 : America heartland hit by the fallout of Trump economic bomb

US consumer prices rose 3.7% in September from a year earlier, beating economists' median forecast in a Bloomberg survey and prompting traders to bet the Federal Reserve may need to raise rates again. Inflation is running hotter in rural areas (4%) than in cities (3.6%), driven by a 35% rise in motor vehicle fuels and a 44% jump in household fuels such as kerosene and propane, which take up larger shares of rural budgets. Tariffs and the Iran war have also pushed up car parts and auto repair costs, with repair services up 5.8%. The article argues this puts Republicans in a tough position ahead of the midterms, since 69% of rural voters backed Trump in 2024. A Pew survey found 35% of Republicans say his policies have hurt the US, up from 18% earlier this year, and the Cook Political Report moved Kansas's Senate seat from 'lean Republican' to 'toss-up'.

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