Several major economic reports released this week paint a mixed picture for American households. Inflation, measured by the Consumer Price Index, rose about 2.7% year over year, signaling that price pressures are cooling more than expected. However, consumer sentiment remains historically low at 52.9, highlighting that many Americans still do not feel affordability relief after years of economic strain. Jeffrey Small, partner at Retirement Income Source, joins Alicia Summers to discuss. He says this disconnect reflects a lag between improving economic data and real-world household finances. While inflation is slowing, prices remain elevated, leaving families feeling squeezed. As wages improve, gas prices ease, and potential tax relief approaches in the year ahead, the key question is when these gains will translate into financial relief for everyday Americans as momentum builds toward 2026.
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