Top financial analysts say the numbers don’t lie: 'The Trump boom is a bust'

U.S. President Donald Trump exits Air Force One as he arrives at Miami International Airport in Miami, Florida, U.S., March 27, 2026.

On Thursday, the U.S. Bureau of Economic Analysis released its latest personal savings rate report, which indicates the amount of people’s incomes left for savings after expenses. As of April 2026, it plunged to a near-historic low of just 2.6 percent, and now top financial experts are sounding the alarm.

“This is stunning,” declared Navy Federal Chief Economist Heather Long. “Personal savings rate April 2025: 5.5 percent. Personal savings rate April 2026: 2.6 percent. That's a sharp plunge. It underscores how squeezed Americans are right now with higher prices and incomes not keeping up.”

In other words, over the past year, American savings have fallen by more than half. Between April last year and January 2026, its drop from 5.5 to 4.3 percent was driven by the economic calamity imposed by President Donald Trump’s disastrous tariff program. According to former Fed chair Jerome Powell, a “big chunk” of the persistently high inflation over this period was directly caused by the tariffs. Then savings plummeted by an even greater number in just three months. While multiple factors have hindered the economy, none have been as damaging as Trump’s war on Iran, which has caused economic turmoil around the globe.

The news of the savings rate collapse comes alongside news that inflation has hit a three-year high, surging up to 3.8 percent. That’s a jump from the already high 3.5 percent in March and 2.8 percent in February.

"Inflation is at a three-year high, and personal savings have cratered to one of the lowest levels in the past 20 years," said Long. "Many Americans are spending more than the income they have coming in. This is not sustainable, especially for lower-income and middle-class households."

Meanwhile, Trump has said little to inspire confidence that the situation will improve. In early May, when asked whether the economic pressure felt by Americans was impacting his decisions regarding Iran, he declared, “I don’t think about Americans’ financial situation.” After this assertion prompted outrage, Trump defended it, saying it was a “perfect statement.”

Americans, however, may not agree.

“A weak U.S. economy is taking its toll on Americans,” explained Europac Chief Economist Peter Schiff. “Q1 GDP grew a mere 1.6 percent, while the savings rate plunged to just 2.6 percent, as higher prices, higher interest rates, and stagnant incomes forced consumers to dip into their meager savings to make ends meet. The Trump boom is a bust.”

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