In August 2025, inflation in the U.S. has picked up again, mainly because of new tariffs on imported goods and ongoing supply chain issues. These tariffs make everyday items, like household goods and electronics, more expensive for consumers. Although gas prices have gone down slightly, helping to ease overall inflation a bit, most people are still noticing higher prices at the store. The Federal Reserve is now in a tough spot—if it raises interest rates to control inflation, it could hurt the job market even more. This rise in inflation comes at a time when the economy is already uncertain, and officials are trying to find the right balance to keep things steady.

In 2025, with the economy facing uncertainty from inflation, job market changes, and global trade tensions, personal finance expert Rachel Cruze is encouraging Americans to take a “Midyear Money Reset.” Her advice comes at a key time, as many people tend to spend more during the summer and might lose track of their budgets. Cruze suggests that individuals take a fresh look at their finances—updating their budgets, planning for upcoming expenses like back-to-school and holiday costs, and cutting back on unnecessary spending. Her practical tips are designed to help people stay in control of their money, even as the economy throws new challenges their way.

The U.S. economy is showing some mixed signals right now. Inflation, which means the general rise in prices, is starting to cool down a bit. For example, prices went up by just 0.3% in June, and the inflation rate for the year is now 2.7%. Even though that’s better than before, housing costs are still going up fast, and people’s wages aren’t keeping up. At the same time, the job market is showing signs of weakness, with fewer jobs added in July than expected. President Trump wants the Federal Reserve to cut interest rates to help boost the economy, but the Fed, led by Jerome Powell, is being careful and says it will wait for more data before making any big decisions. Many experts now think the Fed might lower rates in September to help avoid a possible recession.