Key insights
- The Fed survey indicates persistent inflation concerns and rising job insecurity among US adults, despite most reporting stable personal finances. Declining sentiment among key demographics like low-income and young adults suggests potential weakening in consumer spending. The increased concern about job security, coupled with persistent inflation worries, presents a slightly bearish outlook for US equities.
Investing.com - Nearly three-quarters of US adults rated their personal finances as being in reasonable shape last year, while concerns about inflation persisted and worries about job security increased, according to an annual Federal Reserve survey released on Wednesday.
The poll of 13,099 respondents was conducted last October and captured economic sentiment as President Donald Trump was finishing his first year back in the White House. Just 26% rated the national economy as good or excellent, compared to 29% in 2024 when Trump was campaigning for office, and down from 50% in 2019 before the COVID-19 pandemic.
The survey showed 73% of adults said they were doing okay financially or living comfortably last year, unchanged from 2024. Certain demographic groups, including low-income households, young people and Black adults, saw declines in their assessments of their financial well-being.
Inflation remained the top concern, expressed by more than nine out of 10 respondents. The share citing price increases as a major concern eased, and those reporting they changed behavior in response to higher prices slipped to 77% from 79%.
Views of the job market soured, with 42% of respondents saying that finding or holding a job was either a minor or major concern, up from 37% in 2024. The finding aligns with data on the job market that showed the pace of hiring slowed in 2025 and those who lost work were more likely to remain unemployed for longer.
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