Trump administration officials continue to promote a positive view of the U.S. economy, but new polling, inflation data, and household debt figures reveal a widening gap between that message and how many Americans say they are actually doing financially.
That disconnect was on display during a recent appearance on Fox News by Kevin Hassett, director of the National Economic Council. Asked about consumer spending and rising credit card debt, Hassett argued that Americans’ willingness to continue spending money demonstrates confidence in the future. “People are spending more on gas, but they’re also spending more on everything else,” Hassett said. “Not just groceries but restaurants. That’s a sign that you would see when people are optimistic about the future.”
The comments come at a time when Americans are facing steadily rising prices across much of the economy. While total consumer spending remains elevated, economists note that spending more money does not necessarily mean households are purchasing more goods or enjoying greater financial security. In an inflationary environment, families often spend more simply because necessities cost more. Food, fuel, housing, insurance, and transportation expenses have all increased, forcing many households to devote larger shares of their budgets to basic needs.
Federal inflation data appears to support those concerns. The Consumer Price Index report released in April showed prices rising 3.8 percent year over year, marking the highest inflation rate recorded since 2023. The increase outpaced average wage gains, reducing purchasing power for many workers and creating additional pressure on household budgets. Economists have warned that while headline economic indicators may remain relatively strong, rising prices continue to erode the financial stability of many middle-class and lower-income families.
The administration’s optimistic narrative is also increasingly difficult to reconcile with growing signs of consumer financial distress. During the Fox News interview, Hassett was asked about reports showing that credit card delinquency rates have climbed to 13 percent, the highest level seen in roughly 15 years. Rather than focusing on the struggles facing borrowers, Hassett emphasized conversations with the financial institutions carrying the debt. “We talk to CEOs of the credit card companies all the time, and we do see some increased stress [among consumers],” Hassett said. “But, for the most part, delinquency is different than default.” He then added, “There’s not any threat to the credit card companies.”
The response drew attention because it appeared to frame the issue through the health of lenders rather than the growing number of consumers falling behind on payments. While delinquency and default are not the same thing, economists frequently view rising delinquency rates as an early indicator of financial strain. Higher delinquency rates can signal that households are increasingly relying on credit to cover routine expenses and are struggling to keep up with monthly obligations.
Some economists argue that broad consumer spending figures may also be masking significant differences between income groups. A growing number have described the current economy as “K-shaped,” meaning higher-income Americans continue to see financial gains while many middle- and lower-income households fall further behind. In that environment, strong spending among wealthier consumers can create the appearance of economic strength even as millions of other Americans experience mounting financial pressure.
Evidence cited in recent economic analyses suggests that affluent households are playing an outsized role in sustaining consumer spending. According to Moody’s Analytics, the highest-earning 10 percent of Americans accounted for a large share of consumer spending growth last year. Although some economists have questioned aspects of the analysis, broader data on wealth concentration points in the same direction.
The stock market has delivered significant gains since Trump returned to office, with the S&P 500 rising roughly 25 percent. Those gains, however, have disproportionately benefited the wealthiest Americans. According to data from the Federal Reserve Bank of St. Louis cited in the source material, the top 10 percent of Americans own more than 87 percent of public equities and mutual funds. The bottom half of American families own only about 1 percent of those assets. As a result, stock market gains can substantially increase spending power for affluent households while providing little direct benefit to most Americans.
Public opinion surveys released this week indicate that many Americans do not share the administration’s confidence. A Gallup survey found that only 16 percent of Americans consider themselves financially fulfilled, meaning their finances support the life they want to have. At the same time, 32 percent described themselves as financially stressed, reporting that they are struggling to meet obligations, making difficult trade-offs between financial and personal goals, and feeling a lack of control over their economic circumstances.
Another survey conducted by Economist/YouGov found similarly bleak views of the economy. According to the poll, 42 percent of Americans rate the economy as poor, while only 20 percent describe it as good or excellent. Another 34 percent characterize economic conditions as fair. Perhaps most concerning for the administration, only 15 percent of respondents believe the economy is getting better. Twenty percent said conditions are about the same, while 59 percent said the economy is getting worse.
Those numbers suggest that Americans are evaluating the economy very differently than administration officials. While policymakers often point to aggregate spending figures, stock market gains, and other broad indicators, many households appear to be focused on affordability and the growing challenge of keeping up with everyday expenses.
Economists have echoed those concerns. Responding to the April inflation report, Heather Long, chief economist at Navy Federal Credit Union, warned that rising prices are having a direct impact on households. “This is hurting Americans. There is a real financial squeeze underway,” Long said. She also described the inflation data as a “setback for middle-class and lower-income households.”
The administration’s economic messaging faced additional scrutiny after President Donald Trump was asked whether rising prices were influencing his approach to negotiations surrounding the conflict with Iran. His response suggested little concern about how inflation was affecting households. “Not even a little bit…I don’t think about Americans’ financial situation,” Trump said.
Taken together, the latest polling, inflation reports, debt data, and consumer sentiment surveys paint a more complicated picture than the one offered by administration officials. Consumer spending remains elevated, but growing evidence suggests that much of that spending may reflect higher prices, rising debt burdens, and the spending power of affluent households rather than broad-based economic confidence. As inflation continues to outpace wage growth and millions of Americans report worsening financial conditions, the divide between official economic messaging and household experience appears to be widening.
“This is hurting Americans. There is a real financial squeeze underway.”
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