Thursday, January 8, 2026, episode of the podcast The Excerpt: In 2026, many Americans will feel financially strained. As health care and housing costs remain high, what will it take to make America affordable again? USA TODAY financial reporter Andrea Riquier joins USA TODAY’s The Excerpt to discuss the ongoing affordability crisis.
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Dana Taylor:
Regardless of political affiliation, 2025 was a year of economic uncertainty for many Americans. Changes in tariff policy, persistently high inflation, and rising medical costs have left many consumers reeling. Will the economy improve in 2026?
Hello. Welcome to this excerpt from USA TODAY. I’m Dana Taylor. Today is Wednesday, January 8, 2026.
This year’s buzzword is “affordable.” Will the new year make things a little easier for Americans, or will there be more suffering ahead? For more on this story, we speak to USA TODAY financial reporter Andrea Riquier. Andrea, thank you so much for coming on the show.
Andrea Riquier:
Hi, Danna. Happy new year.
Dana Taylor:
New York City Mayor Zoran Mamdani won on an affordability platform that President Donald Trump initially called bogus. But the message resonates with Americans. Inflation soared during the Biden administration, primarily because of money pumped into the economy to avoid a deep recession during the pandemic. And second, disruptions to global supply chains have also resulted from the pandemic. Is high inflation still a factor in the economy?
Andrea Riquier:
of course. That’s a great question. In other words, inflation is defined as the rate of change in various consumer goods. For example, if you go to the grocery store today and buy eggs, milk, and bread, are they more expensive than they were a year ago or a month ago?Inflation has come down. It’s not as expensive as it was a few years ago. However, inflation has continued in recent years. That means the price, the starting price, is higher than it was, say, five years ago. Therefore, many people now go to the grocery store and see that the prices of things are much higher than before. Sure, the problem has been resolved in terms of rising prices, but again, prices are beyond what many Americans are comfortable with.
Dana Taylor:
Next, let’s look at the Fed and the president’s repeated calls for Powell to cut interest rates, then his resignation, and the subsequent failed attempt to fire Fed President Lisa Cook, all of which were unprecedented actions by this president. Of course, the Fed is an independent institution with extraordinary influence over the economy. What exactly is the Fed’s role, and could lowering rates help the economy?
Andrea Riquier:
That’s a great question. It’s a shame that the Fed has become so politicized. When it comes to the economy we’re talking about, the Fed has two roles. Sometimes I hear it talked about as double duty. Technically known as price stability, it controls inflation, prevents price frenzy, and achieves full employment. In some cases, these two goals may conflict. So, for example, if inflation really gets out of control, one of the best things you can do is raise interest rates so high that people think twice before they buy things, start businesses, or raise money. However, doing so would cause serious damage to the economy, in some cases affecting employment. People no longer want to hire or fire employees.
Would further rate cuts help right now? Probably not. So there aren’t a lot of people who say, “If interest rates went down by 25 basis points, we’d hire more. We’d expand our facilities. We’d start new business.” One segment of the economy that could benefit from a small interest rate cut are buyers in the mortgage market, or people looking to get a mortgage. And mortgage rates are not influenced by interest rates controlled by the Federal Reserve. So, unfortunately, it’s a little bit political to consider interest rates at this point in this environment, but that’s where we are right now.
Dana Taylor:
Let’s talk about medical expenses. This year, 22 million Americans saw their monthly insurance premiums go up. For some people, it can be more than double. Do Republicans in Congress have the political will to pass any solutions here?
Andrea Riquier:
Well, I’ve heard from some of my colleagues in Washington that the House is planning to consider a bill that would extend Obamacare subsidies and help some Americans with higher costs, but unfortunately I don’t expect it to pass in the Senate.
Dana Taylor:
Andrea, the job market was relatively weak last year. Are things any better this year?
Andrea Riquier:
Unfortunately, I don’t think so. I think there’s still a lot of uncertainty in the economy. We were talking earlier about whether companies are likely to increase hiring, whether they may lay off employees given the huge amount of uncertainty surrounding tariffs, economic policy, and upcoming midterm elections. I’d like to be proven wrong, but that doesn’t seem very likely.
Dana Taylor:
Housing is a major issue for many Americans nationwide. Supply is still not keeping up with demand. Gen Z in particular has expressed a lot of frustration about not even being able to enter the housing market. Are there any developments in this regard that give people hope?
Andrea Riquier:
Again, I don’t want to be a Debbie Downer, but as I said earlier, a lot of the constraints in the housing market come from supply. And that’s actually what’s happening at the local level. It’s not like mortgage rates are going to help you. It’s not something the federal government can enforce. It really goes down to the individual city, county, and even state level. Some states around the country are moving toward something near the edge that might help some people in some parts of the country, for example by allowing people to build small units in their backyards.
What I was even more encouraged by was the discussion you started at the beginning of this segment about affordability. There’s actually a recognition that this is a problem, that there’s a housing crisis, and that people are really suffering. And that’s probably the first step toward developing policies that will help.
Dana Taylor:
The next consumer price index is scheduled to be released next week. So what do we expect?
Andrea Riquier:
First of all, it must be said that last fall there was a government shutdown for an unprecedented period of time. This has had a major impact on the data collected and disseminated by agencies such as the Department of Labor. So we’ll have some kind of rough data for a while. If these issues can be resolved smoothly, we can expect inflation to spike in the spring when tax refunds are issued. That’s because the One Big Beautiful Bill Act, passed last summer, will be applied retroactively, meaning many people will receive large refunds in the spring and, if possible, spend them.
Dana Taylor:
It’s only January, Andrea, I know, but tax season comes around fast. Will most Americans receive any relief from the tax cuts passed in President Trump’s Big Beautiful Act?
Andrea Riquier:
I think most Americans will get some sort of tax break. The tax system is a little more complicated. If you’ve never done it before but are on the fence, this might be the year to seek professional help. We have great information about what’s coming. But the simple answer is, “Yes, most Americans will see their taxes somewhat lower, at least temporarily.” These benefits are more pronounced for high-income Americans than for low-income Americans.
Dana Taylor:
Andrea, any final thoughts? thank you.
Andrea Riquier:
Well, I think there’s a lot to be optimistic about. Unemployment remains very low. Inflation is under control. We are now approaching midterm elections, where people who are dissatisfied with politicians can express it at the ballot box. And I think about the economy every day.
Dana Taylor:
Andrea Rikier is a finance reporter for USA TODAY. Thank you for joining us on The Excerpt.
Andrea Riquier:
Thank you, Danna. be careful.
Dana Taylor:
We would like to thank Senior Producer Kaely Monahan for her production assistance. Executive producer is Laura Beatty. Let us know what you think about this episode by sending a note to podcasts@usatoday.com. Thank you for your attention. I’m Dana Taylor. Tomorrow morning, we’ll be back with another episode of USA TODAY Excerpts.
