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Americans are finding it harder to cover emergencies, according to a February survey from the New York Federal Reserve. Only 62.7% of people believe they could come up with $2,000 within a month if needed—the lowest percentage since tracking began in 2015.
This financial squeeze is even worse considering prices have risen 35% since then. While recent inflation numbers were slightly better than expected, experts worry that Trump’s tariffs could push prices higher this year. Fed Chair Powell admitted tariffs are already affecting inflation but doesn’t think this will last long-term.
Meanwhile, retailers are seeing signs of consumer strain—Walmart’s CEO reported that customers are buying smaller packages and running out of money before month’s end, while Dick’s Sporting Goods noted weaker sales in early 2023.
