How do Americans feel about the economy? New poll finds hope going forward
Amid proposed tariffs and stagnant interest rates, Americans are optimistic about the economy’s growth over the next six months, a new poll found.
Compared to the past seven years, the positive outlook is at an all-time high, a Gallup poll published Feb. 3 said. The majority of Americans believe the economy will grow and the stock market will improve while more now believe interest rates and inflation will decrease in the next half year, the poll found.
Overall, 41% of people asked between Jan. 2 and Jan. 15 said they thought interest rates would fall. In 2019, during President Donald Trump’s first term, 9% believed interest rates would drop, the poll found.
The percent of those believing that interest rates would increase has also declined by 32 percentage points since 2019, the results found. Thirty-five percent of poll respondents said they think interest rates will increase.
Twenty-one percent of respondents believe interest rates will stay the same.
The Federal Reserve announced that they would not change interest rates despite previous promises to make cuts, according to a Jan. 29 news release. The Fed said inflation, among other factors, would determine whether or not rates could be cut in the near future.
Interest rates were cut to the 4.25%-4.50% range in December and had two more rate cuts slated for 2025, according to NBC news.
More Americans, compared to past years, also believe that inflation will drop, the poll found. Lack of confidence peaked in 2022, but has since decreased. Now, 52% believe inflation will rise in the next six months compared to 79% three years ago, the poll found.
Confidence that inflation will decrease is at a 6-year-high, the poll found. Thirty-three percent think it will go down compared to 13% in 2019.
Americans remain divided on where one economic factor will go in the next six months. Thirty-eight percent think unemployment will increase while another 38% think it will decrease, the poll said. Twenty-one percent think it will stay the same.
Among party lines, Republicans are fueling the confidence in the economy as a Republican-led White House and Legislature begin their policy agendas.
There was overwhelming confidence for economic growth and stock market improvements, along with confidence in decreases in interest rates, inflation and unemployment among Republicans, according to the poll.
At least 75% of Republican respondents believe the economy and stock market will improve while at least 57% predict decreases in unemployment, inflation and interest rates in the coming months.
Economic confidence has generally grown among Republicans compared to the poll’s results in 2023.
Inversely, Democrats lack confidence in economic improvements as Trump assumed his second term, the poll found.
A staggering 76% believe inflation will increase. Forty-eight percent see interest rates increasing and 59% believe unemployment will climb.
Compared to 2023, fewer democrats believe interest rates will increase, according to the poll.
Democrats showed the most hope in stock market improvements with 51% saying it will improve in the next six months, according to the poll. More also foresee stock market improvements in 2025 compared to 2023.
The poll conducted by Gallup surveyed 1,005 Americans from Jan. 2 to 15. It had a margin of error of four percentage points.
This story was originally published February 3, 2025 at 6:29 PM with the headline "How do Americans feel about the economy? New poll finds hope going forward."
