Americans are showing the highest level of financial pessimism on record, as rising prices continue to strain household budgets and reshape the political and economic debate surrounding former President Donald Trump and the future direction of the US economy.

New consumer data reveals that 54% of Americans now say their financial situation is worse than it was a year ago, marking an unprecedented level of dissatisfaction. The figure has surged sharply since 2021, highlighting how persistent price increases have eroded purchasing power across the country.

Economic sentiment has now fallen below levels seen during the 2008 Financial Crisis, when unemployment and market turmoil dominated headlines. Analysts note that current financial anxiety is even stronger than during the high-inflation decades of the 1970s and 1980s, when official inflation rates exceeded 10%.

Consumers are also bracing for more pain ahead. Inflation expectations for the next year have climbed to 4.8%, the highest reading since June 2025, suggesting many Americans believe price pressures are far from over.

The data arrives at a politically sensitive moment, with inflation and cost-of-living concerns emerging as central economic issues shaping voter sentiment and policy debates tied to Trump’s economic legacy and future plans.

Economists warn that continued pessimism could slow spending and weaken economic momentum, as households cut back amid uncertainty.

Despite signs that inflation growth has moderated from previous peaks, the latest figures show a clear reality: for many Americans, the cost-of-living crisis still feels very real — and the inflation fight is not finished.