10 Reasons Americans Are Fed up With the Economy

For years, polling has shown that Americans are frustrated with an economy that seems stacked against them.

Although some recent indicators suggest that economic growth will continue, everyday expenses remain high, making it difficult for many people to get ahead financially.

General inflation, costly housing, and fears of a potential downturn have created uncertainty. Here's why so many people continue to feel fed up with the state of the economy in 2025.

Inflation may have cooled from its peak, but it's still above the Federal Reserve's 2% target.

The annual inflation rate hovers around 3%, with grocery prices continuing to strain household budgets. Eggs alone saw a staggering 15% price increase between December and January, the largest jump since 2015, according to U.S. Bureau of Labor Statistics data.

These persistently rising costs make it hard for families to feel any relief.

Uncertainty over trade policies is adding to economic worries. President Donald Trump has already announced numerous tariffs on imported goods, and that has many Americans fearing inflation will heat up again.

If tariffs continue, consumers may face higher prices on everything from electronics to cars and more.

After an impressive run, the stock market has stumbled in early 2025. Concerns over tariffs and some less-than-impressive economic data have left investors nervous.

A slowdown in market gains could hurt retirement accounts and investment portfolios.

While the overall job market remains strong — unemployment is still low at 4.1% — recent layoffs in the public sector have some consumers worried.

Federal worker job cuts have raised concerns about future economic stability. Government workers have been laid off in droves recently as a result of Trump's effort to scale back the federal government. That has made many people anxious.

Even though inflation has cooled, food prices remain stubbornly high. Since 2019, grocery costs have risen by 31%, according to a NerdWallet report.

Supply-chain disruptions and rising labor costs are among the factors driving costs higher. These increases mean that even with wage growth, you are likely paying significantly more for food, requiring you to stretch your grocery budget.

Higher gas prices are another source of frustration. More expensive fuel costs can put pressure on consumers and businesses alike, making everything from shipping goods to everyday commutes more expensive.

If gas prices climb even higher, it could undermine consumer confidence and hurt economic growth.

High housing costs remain a major obstacle for many Americans looking to buy a home. Mortgage rates continue to hover closer to 7%, significantly higher than many had expected in 2025.

Home prices also continue to rise in many markets, making it difficult for first-time buyers to find a home. With affordability at historic lows, many may be forced to rent or delay homeownership indefinitely.

Those unable to buy a home will find that renting isn't much easier. Rent prices remain high due to inflation, limited housing inventory, and other factors.

Many renters are now paying significantly more than they did a few years ago: Rents were up 3.5% in January compared with the same time one year ago, according to Zillow. That can make it difficult to save or plan for the future.

Prices in the used car market have actually fallen recently, with the average price of a used car coming down about 3.3% over the last year, according to Consumer Reports. However, affordability remains a challenge for car shoppers.

Interest rates on car loans are still high, with the average loan rate for a used car at more than 12% in 2024, according to Experian. Higher financing costs mean buyers end up paying significantly more for their vehicle over the life of a loan.

Recession fears have crept back into the nation's economic conversations. Uncertainty over tariffs and recent government policy changes are triggering concern about a possible slowdown.

While no clear signs of a recession have emerged yet, consumers may decide to become more cautious, which could impact future economic growth.

The economy may still be growing, but that doesn't mean Americans feel financially secure. Uncertainty about high living costs and new U.S. economic policies has put pressure on households.

As economic risks remain, now is the time to take steps to protect your wealth and prepare yourself financially for what might lie ahead.