Category Basics

In October 2025, the U.S. economy is struggling with what economists are calling "stagflation-lite," a mix of rising prices and higher unemployment. Inflation has been pushed up by ongoing tariffs from the Trump administration, while the Federal Reserve has recently lowered interest rates in an attempt to support growth. However, these changes have not helped much—unemployment has risen to 4.3% and may go higher. Political tension, especially efforts by the White House to influence the Fed, adds to concerns that the economy could get worse. Growth has slowed, and expectations for a quick recovery have faded.

Ongoing inflation in the U.S. is forcing many Americans to rethink how they spend their money. With prices for everyday necessities like food, housing, and utilities continuing to rise, more than 87% of people are making changes to their budgets. A recent survey by TD Bank found that one in four Americans feel worse about their financial situation than they did a year ago. To cope, families are cutting back on non-essential purchases, eating out less, and putting off big plans like traveling or moving. These shifts show how inflation is not only affecting wallets but also causing people to reevaluate their priorities and long-term financial goals.

As of late 2025, the U.S. economy is facing several challenges. Inflation, which is the rise in prices over time, has cooled slightly but still remains higher than the Federal Reserve’s target of 2%. Because of this, everyday items are more expensive, and people are focusing more on buying essentials rather than extras. To fight inflation, the Federal Reserve is keeping interest rates high, which helps slow price increases but also makes it more expensive to borrow money. This affects things like mortgages, car loans, and credit cards, leading to slower home sales and more people falling behind on loan payments. Businesses are also starting to see fewer sales, which may be a sign that consumers are becoming more cautious about spending due to fears of a possible recession.

In October 2025, some people who get both Social Security and Supplemental Security Income (SSI) may see three payments land in their bank accounts. This isn't a bonus or mistake—it’s just due to how the calendar works. Normally, SSI payments arrive on the first of the month. But since November 1 falls on a Saturday in 2025, the government will send that SSI payment early—on October 31. People may also get their usual Social Security retirement, disability, or survivor benefits sometime in the middle of the month, based on their birthdate. So if someone qualifies for both programs, they could get an SSI payment on October 1, a Social Security payment mid-month, and another SSI payment on October 31. It’s all part of the Social Security Administration’s normal scheduling to avoid weekends.

Many American households are feeling uncertain about the economy, even though inflation has slightly gone down. A recent survey by The Conference Board showed that people expect prices to keep rising by around 5.8% over the next year—much higher than what was normal before the pandemic. As a result, more people are worried about a possible recession, and some even believe the U.S. is already in one. Because of these concerns, fewer people are planning big purchases like cars or vacations. However, interest in buying homes has surprisingly increased, despite continued worries about inflation and the economy. Overall, confidence in personal finances is dropping, and many families are feeling the pressure.

In July 2025, Americans increased their spending by 0.5%, surprising many experts and showing new confidence among wealthier households. This boost in spending came mainly from people who felt more secure thanks to rising home values and gains in the stock market. They spent more on non-essential items like vacations, luxury goods, and private healthcare. While this helped certain parts of the economy grow, it also highlighted a divide—many others are still cautious due to ongoing inflation and uncertainty about future interest rate changes by the Federal Reserve. As a result, Americans are now rethinking how they manage their money, balancing between enjoying life and saving for an uncertain future.