📍 Americans are entering 2026 with the bleakest financial outlook since the pandemic.

📌 According to a survey by the New York Fed, more and more people believe their financial situation will worsen in the next 12 months. Conversely, the group that believes they will be better off has dropped to an extremely low level, just ~4%. In a society of 300 million people, with only 4% believing they will be better off in the short term, this is a signal that cannot be ignored.

📌 For the past decade, Americans' sentiment has been fairly stable. Most believed their financial lives would stay the same or improve slightly. Since 2021, the picture has changed. Rising living costs, prolonged high interest rates, and dwindling savings have caused Americans to lose faith in their ability to improve their income.

📌 Most notably, the group that believes "just staying the same is lucky" accounts for a very large proportion. This is a state that often appears when the economy is slowing down. It directly impacts consumer sentiment and drags down economic demand. People feel poorer even in an economy that is declared "stable."