Americans remain uneasy about the economy heading into holiday season

Even though inflation is slowly cooling, Americans are heading into the holidays uneasy about the economy.

As the holiday approaches, Thanksgiving has become a sort of national check-in for the President Donald Trump‘s economic stewardship and whether voters believe his affordability promises are finally paying off.

This uncertainty is also reflected in how consumers approach the holidays, being cautious about big purchases but still willing to spend selectively when they find value. This mix of caution and consensus is something Joanne Hsu, director of consumer research and chief economist at the University of Michigan, follows closely.

REPORT SHOWS NEARLY 1 IN 4 AMERICAN HOUSEHOLDS LIVES PAYBACK TO PAYPAGE

“Our interviews reveal that consumers believe now is a very unfavorable time for large purchases for many reasons, including high prices and high borrowing costs,” Hsu told Fox News Digital. “But it’s possible that consumers may still be willing to spend on smaller-priced items. However, given that they don’t feel confident about the economy in general right now, it’s likely that consumers will be looking for value and the best way to stretch their dollars,” Hsu added.

The disconnect between improving data and persistent pessimism poses a political challenge for Trump, who brought affordability promises back to the White House but now faces voters’ doubts about whether that promise is being delivered.

According to a Fox News national survey76% of voters view the economy negatively, compared to 67% in July and 70% at the end of former President Joe Biden’s term. Voters largely blame Trump for the crisis; Twice as many as Biden blame him for the current economy, and three times as many say his policies hurt them personally.

At the same time, approval of Trump’s handling of the economy has fallen to a new low, while disapproval of his overall job performance has climbed to record levels even among some of his core supporters.

Democrats leaned heavily on affordability themes in state and local elections this fall, and it paid off.

In places like Virginia, New York and New Jersey, where voters are squeezed by high voting rates housing costs Democratic candidates evaluated Trump’s initial economic moves, including his trade policy, arguing that his policies were worsening economic crises rather than easing them.

THE SOCIALIST EXPERIMENT COMES TO NYC: MAMDANI’S VISION OF A MORE AFFORDABLE CITY

New York City Mayor-elect Zohran Mamdani has placed affordability at the center of his campaign to lead America’s largest city. (Christian Monterrosa/Bloomberg/Getty Images)

That message resonates with voters and analysts, promising to rein in energy costs, expand affordable housing and protect middle-class wages, is said to reflect a broader trend: In an economy where many still feel weak, the party that appeals most directly to people’s budgets usually wins.

“I think they made a real strategic mistake in January and February, where the President targeted inflation and promised to lower prices, and then his first and most obvious policy move was to enact policies that would increase prices,” Scott Lincicome, Cato’s vice president for general economics at the Herbert A. Stiefel Center for Trade Policy Studies, told Fox News Digital.

CLICK TO REACH THE FOX NEWS APPLICATION

President Donald Trump has previously said tariffs are an important part of his national security agenda. (Chip Somodevilla/Getty Images)

“Americans are not stupid and they can put two and two together. If the guy who promised you to lower prices suddenly promises to raise prices and prices go up, guess what? That guy is to blame,” Lincicome added.

The real test for Trump may come not from economic data but from dinner table conversations. If Americans aren’t yet feeling the relief it promises, this Thanksgiving may reveal just how unattainable affordability is.