Gas Prices Threaten Tax Refund Gains

0:00On March 22nd, the U.S. economy kicked off the year with hopes of a boost from bigger tax refunds thanks to President Trump's tax cuts. Average refunds are up about $352 so far, hitting around $3,676. But a war with Iran that started on February 28th has driven gas prices sky high, wiping out much of that gain. Nationwide gas now averages $3.94 a gallon, more than a dollar higher than just a month ago. Economists predict it could peak at $4.36 by May, then e-slowly due to the rocket and feathers effect were prices. Climb fast, but drop gradual, lower- and middle-income families feel the pinch hardest, spending a bigger share of their money on fuel while getting smaller refunds. Many households are already stretched thin, with savings down, credit cards maxed, and more reliance on by-now pay later options compared to a couple. Gears back. Their gas costs could run about $740 per household this year, nearly matching the $748 average.

1:06Refund bump, consumer spending on fun stuff like dining out and travel holds steady, but isn't picking up speed. Economists now see overall growth slowing to around 1.9%, with short term inflation pressure from fuel but resilience keeping. Recession off the table for now. As prices linger, watch for that drag on everyday spending to build. This has been Global News Today, powered by AI. I'm Corey with The Story.