America is facing significant economic challenges ahead of the midterm elections. These challenges stem from rising energy prices, housing costs, and high interest rates, which directly affect the daily lives of citizens.
Rising Fuel Prices and Their Impact on the Economy
The rise in fuel prices is considered one of the most visible signs of the current economic situation in the United States. Given the ongoing tensions in the Middle East and fluctuations in oil prices, concerns about energy costs in America have increased. For example, the average price of gasoline reached $4.32 per gallon on September 14, reflecting a 35.9% increase compared to last year. Additionally, the price of diesel has hit a record $6.23 per gallon, indicating a 68.7% annual increase.
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Interest Rates and Their Impact on the Housing Market
Interest rates and their impact on the housing market are also key factors affecting voter sentiment. The average 30-year mortgage rate reached 6.85% in early September, the highest level since June 2025. This increase has led to a decline in refinancing applications to the lowest level in 16 months. First-time homebuyers have effectively exited the market due to mortgage rates approaching 7%, while current homeowners prefer to keep their properties with lower interest rates, resulting in rising rents nationwide.
The U.S. government is also facing rising borrowing costs. The yield on 10-year Treasury bonds reached 5.03%, the highest level since July 2007. Meanwhile, the Treasury Department has increased its bond-buying program from $2 billion to at least $4 billion per operation to bolster market liquidity.
On August 18, the U.S. national debt surpassed $40 trillion for the first time, having increased by nearly $4 trillion since the start of Donald Trump's second presidential term in January 2025. Net interest payments by the federal government on the national debt exceeded $1 trillion in the first 11 months of the fiscal year, driven by rising interest rates and structural deficits.
As the midterm elections approach in November, Donald Trump announced that if Republicans win both houses, he would pay $5,000 to every American adult. This proposal has been welcomed by conservative supporters but has faced sharp criticism from liberal media. Financial analysts warned that this move, costing $1.2 trillion to buy votes, would widen the deficit and lead to legal controversies.
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