Social Security, the program that helps millions of retired Americans, is facing serious challenges. Experts say the program could run out of money by 2032 if nothing changes. Frank Bisignano, the head of Social Security under President Trump, says big changes may be coming—including raising the age when people can retire or changing how benefits are calculated. These possible reforms come at a time when the U.S. is dealing with high inflation, rising national debt, and a growing number of older citizens. With the 2026 presidential election coming up, there’s more pressure than ever on lawmakers to fix the system and protect the future of retirement for younger generations.

In 2025, American consumers are changing the way they spend money because of ongoing inflation, high interest rates, and uncertain economic conditions. Although inflation has cooled since its peak in 2022-2023, many people still feel the pressure on their budgets. As a result, more individuals and families are cutting back on unnecessary purchases, using more coupons, choosing cheaper alternatives, and focusing on saving. Big home improvement projects are being replaced by smaller, more affordable DIY tasks. Companies like Home Depot have noticed this shift, with customers avoiding debt and instead paying for smaller improvements in cash. Overall, people are becoming more careful with their money, focusing on getting the most value rather than spending on luxury or non-essential items.

On September 17, 2025, the Federal Reserve lowered interest rates for the first time this year, cutting its target range to 4.00–4.25%. This change comes after months of keeping rates the same and reflects growing concerns about the U.S. economy. The job market has shown signs of weakness, with fewer new jobs being added and more people filing for unemployment. At the same time, inflation remains higher than expected, partly due to ongoing tariffs that raise prices on goods. The Fed has two main goals: keeping prices stable and making sure there are enough jobs. Right now, achieving both is proving difficult. While the rate cut was expected, officials at the Fed are divided on what should come next.