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As Inflation Soars Under Trump, US Families Face Record High Household Debt
"These numbers tell the real story," said one campaigner. "His administration has failed to address—and in many cases, worsened—an historic cost-of-living crisis that is crushing everyday Americans."
May 12, 2026
While inflation hit a three-year high on Tuesday and President Donald Trump publicly confessed that he doesn't consider how his illegal war on Iran impacts Americans' finances, a Federal Reserve bank revealed that US household debt has risen to a record high of $18.8 trillion.
The Federal Reserve Bank of New York's Center for Microeconomic Data found that household debt increased by $18 billion in the first quarter of this year.
It specifically found that by the end of March, mortgage balances increased by $21 billion to $13.19 trillion, home equity line of credit balances jumped by $12 billion to $446 billion, and automobile loan balances rose by $18 billion to $1.69 trillion.
The center further found that "while student loan balances remained essentially flat, decreasing by $6 billion and standing at $1.66 trillion," the delinquency rate "increased to 10.3% of balances 90+ days delinquent, up from the 9.6%" in the last quarter of 2025.
The analysis notes that credit card balances dropped by $25 billion to $1.25 trillion, a seasonal decline that generally occurs after the winter holidays. However, in its coverage of the New York Fed's findings, CNBC highlighted another report out Tuesday that shows how Americans are struggling with current economic conditions.
As CNBC detailed:
More than half—53%—of consumers carry credit card balances to cover essential expenses, according to a report released Tuesday by debt management company Achieve.
"For many households, higher balances are less a sign of economic optimism and more a sign that wages and savings are struggling to keep pace with essential expenses like groceries, utilities, and housing," Austin Kilgore, analyst for the Achieve Center for Consumer Insights, said in a statement.
Among respondents in Achieve's survey of 2,000 consumers, 57% of borrowers said it would take six months or longer to pay off all their credit card debt.
According to ABC News, "On a call with reporters Tuesday morning, researchers at the New York Fed described Americans' overall credit as 'stable,' but noted there are weaknesses among younger consumers and lower-income households."
Mike Pierce, co-founder and executive director of the advocacy group Protect Borrowers, was far more scathing, declaring in a statement that "working families are at a breaking point and desperately need relief. Instead, President Trump is bragging about his plans for a new White House ballroom while his head economist touts families' surging debts as a sign of a booming economy."
"These numbers tell the real story: Trump's economy has driven up costs," Pierce continued. "His administration has failed to address—and in many cases, worsened—an historic cost-of-living crisis that is crushing everyday Americans under stagnant wages and rampant price gouging by grocery conglomerates, data centers, corporate landlords, and private equity firms."
"Making matters worse, Trump's war with Iran is pushing inflation to record levels and forcing Americans to feel the economic pain at the pump," he added, as gasoline prices topped $4.50 a gallon on Tuesday. "It is clear that President Trump is not only failing to 'Make America Affordable Again' but is actively pushing millions of families further into the red."
Last week, Pierce's group and The Century Foundation published an analysis about soaring US auto loan debt. Report co-author and Protect Borrowers senior fellow Tara Mikkilineni said at the time that "for millions of working families, a car is not a luxury, it is an essential economic lifeline. Working families deserve relief, and they deserve to have a government that is watching out for them, not allowing lenders and auto dealers to rake in record profits at their expense."
Meanwhile, Trump—who is facing intense disapproval from the US public, particularly regarding the economy—has repeatedly made clear he doesn't care how his policies, from sweeping tariffs to the Iran War, impact Americans' pocketbooks.
Trump's assault prompted Iran to restrict ship traffic through the Strait of Hormuz, a key trade route, which has driven up the prices of fossil fuels worldwide. Speaking with journalists outside the White House last month, Trump suggested that $4 a gallon for gas is "not very high."
Asked about the war's impact on the US public's finances again on Tuesday, Trump said that "the only thing that matters when I'm talking about Iran—they can't have a nuclear weapon. I don't think about Americans' financial situation. I don't think about anybody. I think about one thing—we cannot let Iran have a nuclear weapon. That's all."
Those remarks came just hours after the latest consumer price index from the US Bureau of Labor Statistics, which shows that prices increased by 3.8% on an annual basis in April—above economists' expected 3.7% jump—and the cost of living rose above average monthly wage gains. Various experts responded by taking aim at the president.
University of Michigan economist Justin Wolfers said that "Trump campaigned on bringing down the cost of living 'starting on day one,' and then: started a trade war; deported much of the farm workforce, bombed Iran, allowed healthcare subsidies to expire, cut food assistance, ran an interest-rate boosting deficit, and attacked Fed independence."
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Trump's 'Golden Dome' Shield Exposed as 'Trillion-Dollar Boondoggle' by CBO
Sen. Jeff Merkley called the project “nothing more than a massive giveaway to defense contractors paid for entirely by working Americans.”
May 12, 2026
The Congressional Budget Office on Tuesday released a report estimating that President Donald Trump's proposed "Golden Dome" missile defense system would cost $1.2 trillion to create, deploy, and operate over the first 20 years of its existence.
The CBO report projects that acquisition costs for the proposed national missile defense (NMD) system would account for the vast majority of the $1.2 trillion total, including "costs for the system’s major components—namely, the interceptor layers and a space-based missile warning and tracking system."
In fact, the report says that the NMD system's space-based interceptor layer will be so expensive that it "accounts for about 70% of acquisition costs and 60% of total costs."
The CBO also questioned whether this massive investment would successfully protect the US from a foreign missile attack.
"Although the notional NMD system... would be far more capable than defenses the United States fields today," the report states, "it would not be an impenetrable shield or be able to fully counter a large attack of the sort that Russia or China might be able to launch."
"The strategic consequences of deploying an NMD system with the capacity considered here are unclear," the report continues, "because they hinge on an adversary’s perception of the defense's capability and how that adversary chose to respond."
The CBO's estimate on the missile system's cost was nearly seven times the projection Trump made last year, when he said it would cost just $175 billion.
And because the US Department of Defense still hasn't delivered key details about the proposed system, the CBO wrote, it is currently "impossible to estimate the long-term cost" of the initiative.
Sen. Jeff Merkley (D-Ore.), a longtime critic of the "Golden Dome" proposal, said the CBO report shows the Trump-backed project is "nothing more than a massive giveaway to defense contractors paid for entirely by working Americans."
"Just like the president’s symbolic renaming of the Department of Defense or deploying National Guard troops to our cities," added Merkley, who is the ranking member of the Senate Budget Committee, "this move to fund the ‘Golden Dome’ will be far more effective at squandering money than protecting American lives."
The Oregon Democrat vowed to "continue to work with my colleagues in the Senate to prevent another dime from flowing to this racket."
Sen. Ed Markey (D-Mass.), also a longtime critic of the president's proposed missile system, wrote in a social media post that "Trump’s Golden Dome is a $1.2 trillion golden sieve that won’t stop a nuclear attack, but will balloon the deficit and boost the bottom lines of billionaires."
Tommy Vietor, former National Security Council staffer under President Barack Obama and current co-host of Pod Save America, was even blunter in his criticism of the "Golden Dome" plan.
"$1.2 TRILLION for this dumb fucking Golden Dome missile defense system," he wrote in a social media post. "The initial estimate was $175 billion! Madness. No one wants this."
Daniel Larison, contributing editor at Antiwar.com and former senior editor at The American Conservative magazine, wrote that the CBO report exposed Trump's dome as a "trillion-dollar boondoggle."
Trump has said that he was inspired to develop such a missile system after being impressed by Israel’s “Iron Dome," despite the fact that Israel has a vastly smaller landmass to defend compared to the US and has historically faced far more danger from missile and rocket attacks.
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'We Can Tell': Trump Confesses He Doesn't 'Think About Americans' Financial Situation' When It Comes to Iran War
"And they still want you to believe he's fighting for you," said one Democratic lawmaker.
May 12, 2026
US President Donald Trump on Tuesday confessed he is not concerned about the increasing level of economic hardship tens of millions of Americans are facing due to rising costs related to the war of choice he launched against Iran over two months ago.
Despite inflation hitting a three-year high and the average price of gasoline in the US now averaging over $4.50 per gallon, Trump was asked by a reporter outside the White House about how much “Americans’ financial situations” were on his mind as he tries to negotiate an end to the war he initiated with a preemptive attack by US and Israeli forces on February 28.
“Not even a little bit,” Trump said in response. “The only thing that matters when I’m talking about Iran—they can’t have a nuclear weapon. I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing—we cannot let Iran have a nuclear weapon. That’s all.”
Trump on Iran War:
Reporter: What extent are Americans’ financial situation motivating you to make a deal?
Trump: Not even a little bit. I don't think about Americans’ financial situation pic.twitter.com/TJ94pGpqD8
— Acyn (@Acyn) May 12, 2026
"And they still want you to believe he's fighting for you," said Rep. Summer Lee (D-Pa.) in reaction to the president's comments.
While both the US and Israel do have nuclear weapons, the Iranians contend their nuclear program is not designed for military purposes. In 2017, during his first term, Trump ripped up the Joint Comprehensive Plan of Action (JCPOA), brokered by the Obama administration, which experts agree put in strong safeguards to prevent Iran from furthering any unchecked ambitions toward a nuclear weapon.
With peace talks largely stalled due to Trump's maximalist demands and refusal to admit he started the war without a plan on how to end it, frustration is growing in the United States, where a large majority of the population say they oppose the conflict, disapprove of the president's handling of it, and want it brought to a conclusion as soon as possible.
While Trump's comments were predictable to an extent, they still stirred outrage among those concerned about the economic headwinds Americans are facing due to the war in Iran.
"The sky is blue and water is wet," said the Groundwork Collaborative of the confession. "Nice of him to say it out loud though."
"Prices are up on gas, groceries, rent, utilities, healthcare, and just about everything else," said the AFL-CIO. "Shit’s too expensive and workers’ wages aren’t keeping up. America’s unions worry about this 24/7. Our president of the United States should, too."
"It’s no surprise," said Sen. Peter Welch (D-Vt.), with a look of disappointment. "That should be job one for him."
"Trump says he doesn't think about Americans' financial situation at all," asserted Rep. Brendan Boyle (D-Pa.). "We can tell."
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