PHILADELPHIA (KYW Newsradio) — Inflation and high housing costs have been testing the patience of Americans under financial constraints since we started to emerge from the pandemic in 2021. However, a growing number of people say they feel optimistic that things will improve.
About 44% of Americans feel hopeful about the future of their money as they head into 2025 — up from 37% a year ago, according to a recent Bankrate survey.
Although the situation is improving, it remains that most Americans are not hopeful about the economy.
“While we do see this improving sentiment, it remains the case that the majority of Americans believe their finances will not improve,” said Bankrate senior economic analyst Mark Hamrick. “So that doesn’t necessarily give us as positive of a foundation as we would like.”
Hamrick said the election had a big impact on people’s outlooks.
“If your team did not win the White House, then you are more downbeat. If your team is in the position of taking the executive mansion on Pennsylvania Avenue, then you tend to be more upbeat,” he said. “So we saw Democrats’ sentiment flip to the negative and Republicans more positive.”
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Gen Zers are most likely to expect their finances to improve, followed by millennials, the survey found.
The U.S. Department of Labor said prices are up 2.7% from November 2023. Despite that report, the Federal Reserve is still expected to cut interest rates this week.
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