Bank of America analysts are scrutinizing the Trump administration's push to address affordability fears ahead of the critical midterm elections. A Reuters/Ipsos poll shows only 36% of Americans approve of his economic handling, making cost-of-living a top political vulnerability. The White House has proposed measures like a 10% cap on credit card rates to counter a persistent cost crisis.

BofA suggests Trump may tweak his signature trade policy, noting that rebate checks from sweeping tariffs remain a possibility, though its likelihood is low. The administration has already exempted certain food items and delayed a furniture tariff hike. Pressure on the Federal Reserve continues, with the White House launching a criminal probe into Chair Jerome Powell, who denies any wrongdoing.

Housing affordability is another key focus. Trump announced a plan to force mortgage giants Freddie Mac and Fannie Mae to buy mortgage-backed securities, aiming to lower rates. However, BofA cautions that benefits could be offset by limited housing supply due to the 'lock-in effect.' The Fed, meanwhile, is unlikely to cut rates below 3% barring major economic shifts.