With the holidays approaching, Americans find themselves in a state of economic uncertainty, even as inflation shows signs of slowing down. The upcoming Thanksgiving season has become a crucial moment to gauge President Donald Trump’s economic stewardship and whether his promises of affordability are actually delivering results. This uncertainty is affecting consumer behavior, with people approaching the holidays on edge, making cautious decisions about major purchases while still being open to spending selectively on items they perceive as having value.
Joanne Hsu, the director and chief economist of the University of Michigan’s Surveys of Consumers, has been closely monitoring this shift in consumer sentiment. She points out that many consumers feel it’s not a good time for significant purchases due to high prices and borrowing costs, although they might still be willing to spend on smaller items. The situation reveals a disconnect between improving economic data and the persistent pessimism among the public, which poses a political challenge for Trump, especially amid growing doubts about his economic promises.
Recent Fox News polls indicate that 76% of voters rate the economy negatively, signaling a significant drop in approval for Trump’s economic handling. These negative ratings are even higher when considering the impact of his policies, with many voters blaming Trump for the current economic downturn. At the same time, Democrats have capitalized on affordability themes in state elections, particularly in areas with high housing and utility costs, where they’ve effectively framed Trump’s policies as exacerbating the affordability crisis rather than alleviating it.
Scott Lincicome, the vice president of general economics at Cato’s Herbert A. Stief, highlights the strategic misstep by Trump’s administration in early policy moves, which may have led to the current economic climate. He points out that the public can discern the disconnect between the promises and the outcomes, leading to widespread blame on Trump for rising prices. As Thanksgiving approaches, the true test for Trump may not be in economic data but in the conversations happening around dining tables, where the reality of his promises may still not have fully taken hold.