The Federal Reserve’s 2025 Survey of Household Economics and Decisionmaking revealed that 42% of American adults reported concerns over finding or keeping a job, up from 37% in 2024 [1, 2]. About 90% of respondents said price increases worried them, reflecting widespread inflation anxieties [1, 2].
The survey also showed near-zero job growth in 2025, indicating a stagnant labor market [1, 2]. Despite this, 73% of adults said their financial situation was "okay" or "comfortable," unchanged from the previous year. Lower financial comfort was reported among those with less than a high school education, African Americans, adults under 30, and individuals earning under $25,000 annually [2].
Recent inflation data underlines these concerns. The US Consumer Price Index (CPI) for April 2026 rose 3.8% year-over-year, the highest increase since May 2023 [2]. Core CPI, which excludes volatile food and energy prices, grew 0.4% month-over-month, above expectations and steady from the previous month [2]. The Producer Price Index (PPI) surged 1.4% in April 2026 compared to the prior month, marking the largest monthly increase since March 2022 [2].
Energy prices contributed roughly half of the CPI inflation increase, with average US gasoline prices hitting $4.50 per gallon in early 2026, the highest since July 2022 [2].
Federal Reserve Bank of Chicago President Austan Goolsbee expressed concern that inflation is moving in the "wrong direction" and warned of inflation pressures spreading from oil and tariffs into the service sector [2]. Federal Reserve Bank of Boston President Susan Collins said if inflation is not eased, the Fed may consider raising interest rates again [2].
Following the latest inflation reports, markets have lowered the probability of a Federal Reserve rate cut in May 2026 from 60% to under 40% [2].
