Despite President-elect Donald Trump’s victory, many Americans continue to struggle with economic stress. The pandemic has left a lasting impact on the cost-of-living, with consumers dealing with shocking price hikes on housing, groceries, child care, and more.
Inflation has cooled significantly since 2022, but prices haven’t fallen in line with expectations. Wages have largely kept up with inflation, yet consumers still don’t want to pay higher prices. The payment-to-income ratio for housing has increased, making it harder for new home buyers to afford monthly payments.
Car payments are also on the rise, influenced by high interest rates set by the Federal Reserve. Credit card debt has grown to $1.17 trillion, and mortgage balances have reached $12.59 trillion. Child-care costs continue to rise, with a 5.9% increase in December alone.
These economic stressors weigh heavily on Americans’ ability to save, invest, or cover essential costs. Behavioral finance experts say the pandemic changed consumers’ view of money, contributing to splurges on things they missed during lockdowns.
Source: https://www.washingtonpost.com/business/2025/01/20/economy-sentiment-charts