Two-thirds of Americans Fear Imminent Recession

Americans are increasingly pessimistic about the economy, with two-thirds expressing fear or uncertainty and a majority expecting a recession within the next year, according to recent polling. This widespread anxiety is leading to reduced consumer spending, which could trigger a negative feedback loop of layoffs and further economic contraction. Compounding these concerns, a significant rise in the use of 'buy now, pay later' services for basic necessities like groceries signals that inflation remains a persistent problem and that many households are struggling to make ends meet. At the policy level, Federal Reserve Chairman Jerome Powell faces the difficult task of balancing inflation control with rising unemployment, especially amid ongoing trade tensions and new tariffs. The Fed has so far adopted a cautious approach, waiting for clearer economic trends, but risks the country falling into stagflation—a scenario of high inflation combined with weak job growth. Investors and consumers alike are left uncertain about the path forward as both confidence in leadership and economic stability waver.