Finance

More Americans have brighter outlook on state of finances for next year: survey

Published

5 months ago

December 15, 2024

November jobs report beats expectations. FOX Business’ Edward Lawrence with more.

As the new year approaches, more Americans have a brighter outlook for the state of their personal finances in 2025, a recent survey indicated.

Bankrate said Thursday its survey found that 44% of American adults expect to see their financial situation become either “somewhat” or “significantly better” next year, a 7 percentage-point increase from the roughly same time last year.

The survey, conducted on the personal finance site’s behalf by YouGov, took place Nov. 6, the day after the 2024 election, through Nov. 8 and involved nearly 2,500 American adults.

NEARLY 60% OF AMERICANS SAY $100K INCOME REQUIRED TO CURB EXPENSES ANXIETY: STUDY

Less inflation was the most common driver behind the rosy outlooks, with 36% of Americans pointing to that, according to the data.

young woman paying bills at kitchen table

Close up of a young woman doing her bills in the kitchen (iStock / iStock)

The U.S. saw inflation measured by the Consumer Price Index increase 0.3% month-over-month and 2.7% year-over-year in November, the government reported.

Other factors played into positive financial expectations for 2025, the survey found.

For instance, over one-third of Americans that anticipate they will see better personal finances in 2025 reported “rising income” as helping guide their positive outlook. A slightly lower share (30%) pointed to “having less debt,” while “work done by elected representatives” and “better spending habits” also factored into optimism for 25%.

A separate July survey from Discover Personal Loans had reported 80% of Americans were experiencing “some level” of anxiety stemming from finances.

Meanwhile, Bankrate found Thursday that 33% of Americans foresee the state of their finances remaining as they currently are next year.

Just shy of a quarter of Americans held gloomier expectations for their financial situations, reporting they anticipated things would become “somewhat” or “significantly worse,” the Bankrate survey showed.

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Inflation also had the most weight for U.S. adults anticipating worsening finances. That was followed by “work done by elected representatives” cited by 30%, “stagnant or reduced income” cited by 28% and debt holdings by 20%, among other factors, according to Bankrate.

“Post-election, our survey finds that some Americans see elected officials either as a reason why their finances might not improve (or why they will), affirming a continuing political divide. No matter where someone stands along the political spectrum, the opportunity remains for all to identify financial goals and to act upon them,” Mark Hamrick, a senior economic analyst at Bankrate, said in a statement.

Man and woman review paperwork on a couch at home.

Couples should come together to review finances and craft budgets if they’re planning to stay together long-term. (iStock / iStock)

About 21% of Americans have their sights set on reducing their debt in the coming year, the survey found.

AMERICANS’ HOUSEHOLD DEBT SURGED IN RECENT YEARS AMID CHALLENGING CONSUMER ENVIRONMENT

As of the third quarter, American households collectively owed $17.94 trillion worth of debt, including things like mortgages, auto loans, credit cards and student loans, according to the Federal Reserve Bank of New York.

Americans had $12.59 trillion in mortgage balances in the third quarter, for instance. Student loans amounted to $1.61 trillion, while auto loans totalled $1.64 trillion, the New York Fed found.

Finance

Insiders at UnitedHealth are scooping up tarnished shares

Published

1 day ago

May 16, 2025

Business Finance News

Key Points

UnitedHealth Group saw some of its insiders step in and purchase declining shares this week.
Kristen Gil, a director at the firm, bought 3,700 shares worth roughly $1 million on Thursday.
Shares of UnitedHealth plunged nearly 11% to $274.35 on Thursday following a report in The Wall Street Journal that the Department of Justice is conducting a criminal investigation into possible Medicare fraud.

Finance

Federal Reserve will reduce staff by 10% in coming years, Powell memo says

Published

1 day ago

May 16, 2025

Business Finance News

U.S. Federal Reserve in Washington, DC, on January 30, 2024.

Mandel Ngan | Afp | Getty Images

The Federal Reserve will look to reduce its headcount by 10% over the next couple of years, including offering deferred resignation to some older employees, central bank chair Jerome Powell said in a memo.

“Experience here and elsewhere shows that it is healthy for any organization to periodically take a fresh look at its staffing and resources. The Fed has done that from time to time as our work, priorities, or external environment have changed,” Powell said in a memo obtained by CNBC.

The central bank chief added that he has instructed leaders throughout the Fed “to find incremental ways to consolidate functions where appropriate, modernize some business practices, and ensure that we are right-sized and able to meet our statutory mission.” One method for shrinking the staff will be to offer a voluntary deferred resignation program to employees of the Federal Reserve Board who would be fully eligible to retire at the end of 2027.

The central bank said in its 2023 annual report that it had just under 24,000 employees. A 10% reduction would bring that number below 22,000.

The memo comes as the Trump administration has pushed for cost cuts across civil service agencies, spearheaded by Elon Musk and the so-called Department of Government Efficiency. Musk has previously called the Fed “absurdly overstaffed.” Powell’s memo did not mention Musk or DOGE as a factor in the decision to shrink headcount.

The planned staff cuts were first reported by Bloomberg News.

— CNBC’s Matt Cuddy contributed reporting.