WASHINGTON, December 24, 2025 – Despite growing affordability concerns among americans, President Donald Trump is receiving an unlikely bit of sympathy from a former top economic advisor to President Barack Obama. Jason Furman, a Harvard Kennedy School of Government professor and former chair of the Council of Economic Advisers, suggests that consumers may be overlooking surprisingly affordable gas prices, complicating Trump’s efforts to address the broader economic anxieties.
Consumer Pessimism Persists Despite Gas Price Relief
Despite a drop in gas prices to the lowest levels of the year, consumer confidence remains stubbornly low, creating a political challenge for the current administration.
- Gas prices in December hit a year-low of $2.85 a gallon nationally, $0.18 cheaper than last year.
- Consumer confidence has fallen to its lowest point as April, despite the decrease in fuel costs.
- The U.S. economy experienced 4.3% GDP growth last quarter, but unemployment rose to 4.6% in November.
- Economists debate whether the current economic landscape represents a traditional recovery or a “K-shaped” one.
- Wage growth remains strong, though gains for lower-wage workers have slowed.
Gas prices in December marked the lowest thay’ve been all year, according to data from AAA, hitting $2.85 a gallon nationally – $0.18 cheaper than this time last year. Yet, consumer confidence has fallen to its lowest point as April, presenting a paradox for the Trump administration as it attempts to address widespread economic anxieties.
The economic picture is further complicated by conflicting indicators. The U.S. saw its strongest economic growth in two years last quarter, with a 4.3% GDP increase, exceeding analysts’ expectations. However, the unemployment rate crept up to 4.6% in November, according to the Bureau of Labor Statistics, higher than the 4.2% rate seen last November and above the 4% considered reasonable.
“if all you had were the jobs numbers, we’d all be doing our recession probabilities right now-Is it 30%? Is it 50%? Is it 70%?” Furman questioned. “But then we have this GDP growth number, and that just gives us our boom probability.”
Furman is skeptical of the widely discussed “K-shaped” economic recovery-the idea that the wealthy are prospering while lower-income Americans are left behind. He points to continued wage growth as a sign of broader economic health. Data from the Federal Reserve Bank of Atlanta Fed shows wage growth for the lowest-earning quartile has slowed from a high of 7.5% in 2022 to 3.5% today, its lowest in a decade, but remains positive.
“I’m less convinced about this K-shaped recovery than other people are,” Furman said. “Everyone wants prices to be 25% lower. Nobody wants their wages to be 25% lower.”
Other economists, such as KPMG chief economist Diane Swonk, see a stronger connection between economic growth, rising unemployment, and the K-shaped economy. Swonk told Fortune that the strong GDP growth reflects a situation where businesses are growing without substantially expanding their workforce, boosting profits without increasing labor costs-a trend potentially accelerated by AI-driven job displacement.
“We are seeing most of the productivity gains we’re seeing right now as really just the residual of companies being hesitant to hire and doing more with less,” she said.
Meanwhile, Trump has offered mixed messages on the affordability crisis.In a primetime address last week,he claimed he inherited an economic “mess” from the previous administration,while simultaneously asserting that the economy is the strongest it’s ever been. He also proposed cutting checks for military personnel to offset housing costs.
