In Trump's Economy Many Americans Can’t Buy Homes, Get jobs, Move or Quit McJobs

A mix of high borrowing costs, dwindling job openings and growing economic and political uncertainty have left many U.S. households at a standstill, with many Americans saying they feel unable to buy new homes, take new jobs or move to new cities.

The Federal Reserve’s interest rate cut last week — the first of the year, with the expectation that more will follow — may have boosted stock prices, but it isn’t likely to make much of a difference to everyday Americans, economists say. While the economy is generally in good shape, many people feel stuck.

“Consumers have been increasingly paralyzed by economic uncertainty, tariffs, rising inflation, chances of a recession — and a quarter-point change in the Federal Funds Rate rates isn’t going to solve those problems,” said Jessica Riedl, senior fellow at the Manhattan Institute, a conservative think tank. “There are much larger headwinds holding back the economy that must be addressed first.”

Monthly home sales have recently bottomed out, reaching lows last seen after the Great Recession in the 2000s. Americans aren’t leaving their jobs or getting new ones. Hiring has stalled considerably this year, with employers adding 88,000 jobs in the past three months, roughly one-third of last summer’s count. And census data shows that Americans are generally moving less — to new homes or cities — than they have in decades.

For the Americans who have locked in low mortgage rates and are happy in their jobs, economic inertia may not be a problem. But for many others — including recent graduates and the unemployed — the lack of opportunities is making it difficult to find a foothold in this economy. [MORE]