Marketplace Consumer spending outpaced income — again
16 snips
Sep 26, 2025 Consumers are spending beyond their income for the third month in a row, using savings and credit cards to cope with rising prices. The discussion takes a turn toward how impending tariffs will impact various costs, including healthcare. Meanwhile, LA businesses brace for ICE raids, affecting both workers and the local economy. In an artistic twist, an artist reflects on how e-commerce has transformed retail landscapes. Lastly, debates arise over who should manage surfing in the 2028 Olympics as a ski group vies for control.
AI Snips
Chapters
Transcript
Episode notes
Tariffs Add Uncertainty, Not A Big Inflation Spike
- Tariff policy has created uncertainty but hasn't produced the large inflation pass-through economists feared so far.
- Fed officials remain split between cutting rates quickly and holding to guard against inflation risks.
Consumers Spending Beyond Income
- For the third month running, Americans spent more than they earned and are drawing down savings or adding to credit-card debt.
- That pattern is fragile because it relies on savings or credit while the labor market softens.
Use Credit And Savings Only As A Bridge
- If prices rise, consider using savings or short-term credit only as a bridge and not a long-term plan.
- Monitor labor market signals because continued softening makes debt-financed consumption unsustainable.