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.