Economist Peter Schiff highlighted President Donald Trump’s rapidly declining approval ratings on August 2, 2026, framing the data as evidence of economic hardship for American consumers. Citing a July AP-NORC poll conducted between July 23 and July 27, Schiff pointed to an approval rating of 33%, with 66% disapproval of the president’s job performance. This marks a 4 percentage point drop from the previous June survey and stands as the lowest approval rating for any second-term U.S. president since 1940, surpassed only by Richard Nixon in the days preceding his resignation.

The political sentiment reflects broader economic pressures, particularly as U.S. gasoline prices crossed $4 a gallon in July. Patrick De Haan warned that prices could remain above $4 per gallon beyond the first week of August, fueled by renewed fighting between the U.S. and Iran that disrupted oil flows through the Strait of Hormuz. Schiff argued that these polling numbers are "not consistent with a booming economy," directly countering claims by Trump and his supporters that the administration’s policies are driving robust growth.

Disapproval is widespread across party lines, with broad opposition from Democrats and independents, alongside roughly 37% disapproval among Republicans. Support for Trump’s handling of the Iran conflict specifically collapsed to 28%, indicating that foreign policy tensions are significantly impacting his domestic standing. A New York Times report also noted the historic nature of these low polling numbers, reinforcing the narrative of diminishing public confidence.

Impeachment Odds Rise

Prediction markets reflect the growing political risk surrounding the presidency. On Polymarket, a Polygon (CRYPTO: POL)-based platform, the odds of Trump being impeached before his term ends stood at 64%, little changed since April. Similarly, on Kalshi, a contract tracking whether Trump will be impeached before January 1, 2028, trades at 66%. These figures suggest sustained market expectation of congressional action, despite Trump having been acquitted in both previous impeachment trials during his first term—in December 2019 and January 2021.

What the Numbers Show

The divergence between the administration’s narrative of a "booming economy" and the reality of $4-plus gasoline prices creates a tangible disconnect with voters. While inflation and geopolitical instability drive consumer pain, the polling data suggests these factors are translating directly into political vulnerability. The stability of impeachment odds at roughly 65% across different platforms indicates that this is not a transient spike but a entrenched risk factor for the remainder of the term.

President Donald Trump has formally appealed a federal court ruling that characterized his $10 billion lawsuit against the Internal Revenue Service (IRS) as being filed in "bad faith." The appeal was submitted to the 11th U.S. Circuit Court of Appeals by Trump, two of his adult sons, the Trump Organization, and two attorneys. This procedural step follows U.S. District Judge Kathleen Williams' order on Jul. 13, which rejected the administration's legal strategy. The stakes for the executive branch are high, as the outcome could influence future litigation tactics involving federal agencies and significant monetary claims.

The filing marks a direct challenge to the lower court's assessment of the lawsuit's validity. Trump expressed regret over the cancellation of the controversial $1.776 billion "lawfare" fund, which had been linked to the proposed settlement in the original case. The notice of appeal indicates an intent to overturn the judge's determination that the suit lacked merit or was motivated by improper purposes rather than genuine legal grievances.

Political Alignments and Policy Shifts

In a notable bipartisan alignment, Sen. Elizabeth Warren (D-Mass.) voiced agreement with President Trump’s stance on eliminating the debt ceiling. Warren stated that the debt limit should be removed because its primary function is to threaten an avoidable economic crisis. "Donald Trump is right about this," Warren wrote. "Eliminate the debt limit—its only real function is to threaten an economic crisis." This convergence of views suggests potential legislative momentum for structural changes to federal borrowing limits, despite historical partisan divides on fiscal policy.

Internal Party Warnings

Sen. Mark Kelly (D-Ariz.) cautioned Democratic lawmakers against adopting far-left demands regarding police, prisons, and the Pentagon, warning that such positions could cost the party seats in upcoming midterm elections. Speaking on "Next Question with Katie Couric," Kelly argued that calls to abolish these institutions do not resonate with the broader American electorate. He highlighted specific proposals, including defunding the Pentagon and removing border controls, as examples of rhetoric that could be detrimental to Democratic success.

Other Key Developments

President Trump also rejected findings from his own Justice Department regarding damage to the Lincoln Memorial Reflecting Pool. Trump labeled the peeling of the newly renovated lining as "pure vandalism," disagreeing with assessments that attributed the issue to faulty installation. Meanwhile, Sen. Bernie Sanders (I-VT) accused cryptocurrency companies of lobbying Congress to pass the "corrupt" Clarity Act as retribution for election-season political spending. Sanders cited "very high sources" claiming politicians were advised not to antagonize big-money interests and cryptocurrency billionaires who have made substantial campaign contributions.

Summary of Key Actions

What the Numbers Show

The financial figures in this week's developments highlight significant exposure and strategic positioning. The $10 billion IRS lawsuit represents a substantial financial claim, while the scrapped $1.776 billion "lawfare" fund underscores the scale of resources previously allocated to legal defense strategies. These amounts indicate that the litigation is not merely symbolic but involves material financial stakes for the Trump Organization and associated entities. The absence of a successful settlement at the lower court level forces a continuation of legal expenses and uncertainty, with the appellate process determining whether the $10 billion claim can proceed or if the "bad faith" designation will stand.