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Here’s what to expect in 2026, after a year of “uncertainty.”
Consumers started 2025 feeling optimistic, but have ended on a low note.
The data were collected in late November, during peak Black Friday discount season.
Based on this week’s jobs report, growth in average hourly earnings slowed to 3.5%, while price inflation is heating up.
The Employment Cost Index shows wages and benefits grew 3.5% in September year-to-year. That’s the lowest increase since 2021.
Inflation has been stubbornly hanging around 2.8% for months. That’s above the Federal Reserve's 2% target. Meanwhile, key areas of the labor market are showing signs of weakness.
Lower-income consumers are pulling back on dining out, while higher-income households continue their restaurant spending.
If the Federal Reserve cuts rates next week as predicted, and Kevin Hassett becomes Fed Chair, where will rates be at this time next year?
The rising costs of healthcare, childcare, and groceries are putting more pressure on families.
Some one in seven recipients ages 65 and older depend on Social Security for nearly all of their income.