Economists say holiday spending is higher than a year ago but is growing more slowly, as rising prices outpace paychecks and force consumers to make tougher choices at the register.
Many shoppers report cutting back. Groceries have become more expensive, prompting households to trim discretionary expenses such as dining out, said Amanda Maxwell describing typical adjustments. A recent poll found 46 percent of Americans view the current cost of living as the worst they can remember.
That squeeze is driving greater use of credit cards and buy now, pay later services. Reporters note overall debt levels are climbing even while spending continues, with consumers frequently turning to borrowing to cover gifts and everyday needs.
The economic strain is also part of the political conversation. Last year, then-candidate Trump promised to make America more affordable; this week, during a cabinet meeting, President Trump dismissed the word affordability as a political tactic used by opponents. Some Republican officials pushed back, saying rising costs matter to voters and merit attention.
On Face the Nation, Margaret Brennan pressed Treasury Secretary Scott Bessent about ongoing finger pointing over responsibility for inflation. The exchange underscored how inflation and affordability remain central talking points as campaigns and officials argue over who owns the economy and what can be done to bring prices down.
The Federal Reserve is meeting to weigh a potential interest rate cut, a decision that divides policymakers and could affect borrowing costs and consumer behavior.
At the same time, gas prices have fallen below three dollars in some areas, a development the president plans to highlight at an upcoming campaign event in Pennsylvania. Even so, many households are still juggling budgets, weighing debt levels, credit use, and small cutbacks as they shop this season.