Economists say holiday spending is up from last year but growing more slowly, and many Americans are making tough choices at the register as prices rise while paychecks have not kept pace.
With holiday shopping underway, some people say they’re cutting back. “Groceries are more expensive, so you have to cut back on things that you normally would do, like eating out,” said Amanda Maxwell, describing household adjustments. A new political poll found 46% of Americans say the current cost of living is the worst they can remember.
That crunch is prompting more use of credit and “buy now, pay later” options. Reporters note debt levels are climbing even as spending continues: consumers are often relying on borrowing to pay for gifts and necessities.
The story has also played into political debate. Last year, then-candidate Trump promised to “make America affordable again.” This week, during a cabinet meeting, he dismissed the word “affordability” as a political ploy by opponents. That statement drew pushback — some Republican officials said rising costs clearly matter to voters and deserve attention.
On Face the Nation, Margaret Brennan questioned Treasury Secretary Scott Bessent about the persistent finger‑pointing over responsibility for inflation. The exchange underscored how the issue remains a major talking point as campaigns and officials trade claims about who “owns” the economy and what’s being done to bring prices down.
The Federal Reserve is meeting to consider a potential interest rate cut, a contentious decision among policymakers. The broader backdrop: gas prices recently fell below $3 in some places, a development President Trump plans to highlight at an upcoming campaign event in Pennsylvania, while many households continue to juggle budgets, weighing debt, credit use and cutbacks as they shop this season.
