A new poll has found that the economy is still a major source of stress for many Americans as inflation remains sky-high, and the Federal Reserve continues to raise key interest rates.
The poll, conducted by The Associated Press/NORC, found that Americans are more worried about the economy and its impact on their finances than in recent years. The survey also shows a divide between those who are worried and those who are not, depending on household income.
While overall, 42% of Americans reported their personal finances were a “major source” of stress, the number rose to 51% for Americans making less than $50,000. Among those who make over $100,000, only 23% listed it as a major source of stress, and 47% of those who make between $50,000 and $100,000 reported the same.
When it comes to how the same groups view the economy as a source of stress, those who make between $50,000 and $100,000 rated it the highest, with 39% saying its a major source. This is compared to those who make under $50,000 (37%) and those who make over $100,000 (30%).
No matter the income bracket, 74% of respondents overall said they are feeling the sting of inflation, which has remained at or near a four-decade high since last year.
While the effects of inflation are being felt and the economy remains a point of stress, 53% of respondents did describe their financial situation as good, with 47% saying it was poor.
The poll comes as the Federal Reserve moved to raise interest rates by a quarter of a percent and after Federal Reserve Chairman Jerome Powell spoke before the Senate Banking Committee earlier this month, depicting a rocky road ahead in the bank’s fight to cool inflation to 2%, from its current 6%.
Powell said during his testimony that the latest economic data was “stronger than expected,” and because of it, the level of “interest rates is likely to be higher than previously anticipated.”
“If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” Powell said.
This fell in line with a point he made earlier this year when discussing the central bank’s forecast for 2023 and its plans for getting inflation in line.
“We expect 2023 to be a year of significant decline in inflation,” Powell said at the time. “This process is likely to take quite a bit of time. It’s not going to be, we don’t think, smooth. It’s probably going to be bumpy.”
Now, Americans are continuing to be weary of the bumpy road that Powell and many other economic forecasters have described. The poll found that few adults feel “very confident” that they can keep up with their expenses (29%), pay an unexpected medical expense (23%), have enough money to retire (18%), or find a job if they need to (26%).
The poll was conducted from March 16-20 and included responses from 1,081 adults in the United States. There is a margin of error of plus or minus 4 percentage points.
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