Consumers are increasingly reporting that their incomes aren’t keeping up with the financial pressures they face. (David Paul Morris/Bloomberg via Getty Images)
That sense of mounting pressure is backed up by recent analysis.
According to the Bank of America Institute, inflation has risen faster than middle- and lower-income households’ after-tax wages since January 2025.
As a result, nearly one in four U.S. households is now living paycheck to paycheck, a number that has grown during the past year.
NEARLY 1 IN 4 AMERICAN HOUSEHOLDS LIVING PAYCHECK TO PAYCHECK, REPORT REVEALS
What that means is that the erosion of purchasing power is pushing more Americans to the edge of their budgets, making it harder to keep up, let alone get ahead.
President Donald Trump is grappling with affordability issues that plagued former President Joe Biden's administration. (Aaron Schwartz/CNP/Bloomberg via Getty Images)
For now, the daily reality for many Americans remains the same: Prices feel too high, paychecks feel too thin and confidence in the future is fragile.
How quickly that changes and whether voters give Trump credit for it may determine the tone of the country’s economic and political debate in the months ahead.
Amanda covers the intersection of business and geopolitics for Fox News Digital.
https://www.foxnews.com/politics/prices-remain-high-bigger-worry-now-falling-incomes