As the U.S. economy works through another period of uncertainty, Sarah Foster, a U.S. economy reporter and analyst at Bankrate, is offering a clearer view of where conditions stand. In a recent conversation, Foster outlined the market’s recent volatility and shared insight drawn from fresh survey data and emerging economic signals.
Foster described current market behavior as “falling up the stairs,” a phrase she used to capture the uneven and choppy nature of recent price action. Inflation pressures and a cooling labor market remain key challenges, yet optimism among economists has begun to build. According to Bankrate’s latest quarterly survey, 50% of economists now believe economic growth could exceed long-term trends this year, while just 20% expect growth to fall below trend.
Foster pointed to several forces supporting that outlook, with rising investment in artificial intelligence standing out as a meaningful driver of growth. That momentum comes as the Federal Reserve is widely expected to begin cutting interest rates, which could provide additional support for the economy. Still, the optimism seen among economists has not translated to households. Consumer sentiment remains subdued, with a large share of respondents saying they expect their personal finances to worsen over the next year, reflecting persistent financial strain among lower-income families.
A central theme in Foster’s analysis was the reality of a K-shaped economy, where recovery has been uneven across income groups. While some households and sectors continue to benefit from economic growth, lower-income Americans are feeling increased pressure from inflation. Foster noted that roughly 50% of credit cardholders are now carrying balances from month to month, a trend that raises concerns about long-term financial stability for those already struggling to keep up with rising costs.
The labor market also remains a mixed picture. Foster highlighted a noticeable slowdown in job growth in 2025 compared with 2024, underscoring the difficulty many households face in finding stable work. While initial jobless claims have declined, she emphasized that conditions remain challenging for lower-income workers. Many are still underemployed or effectively “stuck,” pointing to a labor market that is tight in headline numbers but uneven in lived experience.
Looking ahead, Foster stressed that understanding the economy will require attention to both broad macro trends and the everyday realities facing different groups of Americans. Her analysis highlights the need for policies that address widening gaps in the K-shaped recovery while closely monitoring inflation and consumer confidence. While AI investment could help support future growth, she noted that sustainable progress will depend on efforts to ease financial disparities and strengthen household balance sheets.
Overall, Foster’s insights depict an economy with real potential but meaningful obstacles still in place. The path forward will require action from policymakers and businesses alike to build a more resilient and inclusive system. Achieving lasting growth, she suggested, ultimately depends on ensuring that economic gains translate into greater financial security for a broader share of Americans.