Current Events in May 2025

• Over half of Americans (56%) have already started cutting back on spending due to recession concerns.

• 40% of Americans have switched to store-brand groceries to save money on essentials amid a potential recession.

• Over half of Americans (52%) could only cover expenses for 2 months or less if they lost their income. Gen Z (58%) is the most likely to say so.

As the specter of a recession looms over the U.S. economy, Americans are bracing for impact by tightening their wallets and reevaluating spending priorities. A recent survey conducted by CouponFollow offers a revealing look at how over 1,000 consumers are adapting to growing economic uncertainty. 

The findings paint a complex picture: while many are cutting back on spending, others are standing firm on purchases they believe are essential to their well-being.

Anxious nation

The mood across the country is one of mounting concern. A staggering 69% of Americans say they feel more financially anxious this year than they did last year, and nearly half (45%) admit they feel unprepared for a potential recession. The financial unease is prompting widespread changes in household economics, including dipping into savings—29% have done so in the past six months just to cover everyday expenses.

Generation Z, often lauded for its adaptability and digital fluency, appears especially vulnerable. Over half (58%) of Gen Z respondents said they could only cover expenses for two months or less if they lost their income. Nearly half (48%) said they feel unprepared for a recession, the highest among all age groups.

The illusion of normalcy

In a bid to project stability, many Americans are maintaining appearances even as they scale back. About 1 in 4 respondents (26%) said they're "pretending" to spend normally, though they're actively cutting expenses behind the scenes. This behavior is particularly common among Gen Z, with 40% admitting to putting on a financial façade.

Overall, 56% of Americans reported that they've already begun cutting back on spending due to recession concerns. Tactics range from the practical—43% are buying fewer groceries or smaller quantities—to the strategic, with 40% switching to store-brand products and 38% relying more heavily on coupons and discounts.

What consumers won’t sacrifice

Even amid financial strain, not all spending is negotiable. Mental health care, pet essentials, and creative outlets remain budget priorities for many—especially for Gen Z.

• Mental health: 27% of Gen Z say therapy or mental health care is a non-negotiable expense.

• Personal expression: One in five Gen Zers refuses to cut spending on fitness memberships and hobbies.

• Personal care: 15% of Gen Z find it emotionally difficult to reduce spending on personal grooming, a rate more than double that of Gen X and baby boomers.

• Pet care, a top priority across all generations, is slightly less sacrosanct for Gen Z (36%) compared to older Americans—baby boomers lead with 44% unwilling to compromise.

Interestingly, travel—a traditional luxury expense—has become easier to forego for younger Americans. Only 8% of Gen Z cite travel as the hardest thing to give up, compared to 18% of baby boomers.

But in the face of economic stress, Americans are proving resilient. Rather than panic, the survey found many are adopting a pragmatic approach: cutting back where it hurts least, preserving what matters most, and searching for ways to stretch every dollar without sacrificing well-being.

These shifts hint at a broader trend of mindful spending. While a full-blown recession remains uncertain, the emotional and financial recalibration already underway is shaping a more value-conscious consumer. And if the current patterns are any indication, Americans—especially younger generations—are rewriting the rules of budgeting with both survival and self-care in mind.

• A new study from the European Society of Cardiology found that receiving the shingles vaccine can lower the risk of heart disease by nearly 25%. 

• The study found that the protective benefits can last for up to eight years, with the greatest protection coming in the first two to three years after vaccination. 

• The type of vaccine participants in the study received isn’t currently available in all countries; therefore, the team plans to do more research to understand if different types of shingles vaccines have the same heart health benefits. 

A new study from the European Society of Cardiology explored how the shingles vaccine can benefit consumers’ heart health. 

According to their findings, the vaccine was associated with a nearly 25% lower risk of heart disease; this protective effect was seen in study participants for up to eight years. 

“Shingles causes a painful rash and can lead to serious complications, especially in older adults and those with weak immune systems,” lead researcher Professor Dong Keon Yon said in a news release. “Previous research shows that, without vaccination, about 30% of people may develop shingles in their lifetime.

“In addition to the rash, shingles has been linked to a higher risk of heart problems, so we wanted to find out if getting vaccinated could lower this risk.This is one of the largest and most comprehensive studies following a healthy general population over a period of up to 12 years.”

The study

For the study, the researchers analyzed data from over 1.2 million people living in South Korea from 2004 through 2021. The team evaluated records from the Korea Health Insurance Review and Assessment Service, the Korean National Health Insurance Service, and the Korea Disease Control and Prevention Agency. 

This allowed the team to determine who did and did not receive the vaccine, as well as their long-term health outcomes. They also took into consideration other factors that can influence heart health, including age, lifestyle, socio-economic factors, and more. 

Heart health benefits 

Ultimately, the researchers determined that the shingles vaccine was associated with better heart health outcomes. 

The study showed that those who received the shingles vaccine were: 

• 23% less likely to experience any kind of cardiovascular event

• 26% less likely to experience a major cardiovascular event – a stroke, heart attack, or heart disease-related death 

• 26% less likely to develop heart disease 

• 22% less likely to develop coronary heart disease 

“There are several reasons why the shingles vaccine may help reduce heart disease,” Professor Yon said. “A shingles infection can cause blood vessel damage, inflammation and clot formation that can lead to heart disease. By preventing shingles, vaccination may lower these risks.”

Breaking down the benefits 

The study also found that participants experienced these protective heart health benefits for up to eight years after vaccination. However, the strongest benefits were felt in the first two to three years after vaccination. 

The researchers learned that certain groups of participants were more likely than others to receive these protective health benefits: men, people under 60, people with unhealthy lifestyles, people from low-income households, and people living in rural areas. 

It’s also important to note that the participants received a live zoster vaccine, which isn’t currently available in every country. This type of vaccine contains a weakened form of the varicella virus that causes shingles; however, updated singles vaccines are more likely to contain a protein from the varicella virus. 

“Since the live zoster vaccine is not suitable for everyone, more research on the recombinant vaccine is needed,” Professor Yon said. “While we conducted rigorous analysis, this study does not establish a direct causal relationship, so potential bias from other underlying factors should be considered.”

• A new study links prolonged sedentary behavior to increased risk of cognitive decline and brain shrinkage associated with Alzheimer’s disease.

• Even daily exercise does not offset the negative impact of extended sitting, especially in individuals with a genetic predisposition to Alzheimer’s.

• Researchers emphasize the importance of reducing total sitting time as a strategy to support brain health in aging adults.

Studies from a decade ago suggested “sitting is the new smoking,” suggesting that a sedentary lifestyle was bad for your health. Now, a new study from Vanderbilt University Medical Center and the University of Pittsburgh reveals that spending too much time sitting, even for those who exercise regularly, can significantly increase the risk of cognitive decline and brain shrinkage associated with Alzheimer’s disease.

Published in Alzheimer’s & Dementia: The Journal of the Alzheimer’s Association, the research explores the effects of sedentary behavior in aging adults and its link to neurodegeneration. The findings carry serious implications for the more than six million Americans living with Alzheimer’s and the millions more at risk.

Tracking movement, measuring impact

Admittedly, it was a small sample. The research, led by Dr. Marissa Gogniat, assistant professor of Neurology at the University of Pittsburgh, involved 404 adults aged 50 and older.

Participants wore activity-tracking devices for a week, providing detailed data on how much time they spent sitting or lying down. The researchers then analyzed this sedentary behavior against cognitive tests and brain imaging over a seven-year period.

The results were clear: individuals who were more sedentary experienced greater cognitive decline and notable shrinkage in brain regions critical for memory and Alzheimer’s development. These effects were observed regardless of participants’ exercise routines.

Genetic risk increases the threat

The study found that individuals carrying the APOE-e4 allele—a known genetic marker for Alzheimer’s disease—were particularly susceptible to the negative effects of sedentary behavior. This suggests that lifestyle modifications may be especially vital for those with an elevated genetic risk.

“Reducing your risk for Alzheimer’s disease is not just about working out once a day,” Gogniat said. “Minimizing the time spent sitting, even if you do exercise daily, reduces the likelihood of developing Alzheimer’s disease.”

The research was supported by the Alzheimer’s Association and the National Institute on Aging and adds to a growing body of evidence that daily habits—beyond structured workouts—play a pivotal role in long-term cognitive health.

• Ford is recalling 273,789 Navigator and Expedition vehicles (model years 2022–2024) due to a defect in the front brake lines. 

• Vehicle owners can contact Ford or the NHTSA for more information and check if their vehicle is affected by visiting nhtsa.gov and entering their license plate or VIN.

• Affected vehicles could lose front brake function, increasing the risk of a crash.

Ford is recalling 273,789 2022-2024 Navigator and Expedition vehicles. The front brake lines may contact the engine air cleaner outlet pipe and become damaged, possibly resulting in a brake fluid leak and a loss of front brake function.

A loss of brake function increases the risk of a crash.

What to do

Dealers will inspect the front brake line and replace the brake line or air cleaner outlet pipe, as necessary, free of charge. Owner notification letters are expected to be mailed May 26, 2025. Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 25S47.

Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 888-327-4236 (TTY 888-275-9171) or go to nhtsa.gov.

To determine if your vehicle is part of this recall, visit the NHTSA recall page and enter the license plate number or 17-digit VIN.

• Seriously delinquent student loans surged in the first three months of 2025, harming the credit scores of millions of borrowers.
• Nearly one in four student loan borrowers were behind in their payments in the first quarter of 2025.
• Outstanding student loan debt grew slightly to $1.63 trillion in first quarter of 2025.

The share of student loan debt that is seriously delinquent, or more than 90 days past due, surged to around 7.7% in the first quarter of 2025, up from just 0.5% in the fourth quarter of 2024, according to the Federal Reserve Bank of New York.

The staggering jump follows a 43-month pause on student loan payments due to the pandemic. Starting in Sept. 2023, borrowers had a year to resume payments before being reported to credit bureaus, a grace period that expired in Oct. 2024.

"The first batch of past due student loans were reported in the first quarter of 2025, resulting in a large jump in seriously delinquent borrowers,” said Daniel Mangrum, research economist at the New York Fed, in a statement.

More than 20 million federal student loan borrowers weren't in repayment and 5 million had a zero dollar monthly payment as of end of the first quarter of 2025, according to The New York Fed.

Missing a monthly student loan payment makes the borrower delinquent and after 90 days of not making a payment, the borrower is at risk of default and will be reported to credit bureaus, according to Federal Student Aid.

More than 2.2 million student loan borrowers who became newly delinquent saw their credit scores drop by more than 100 points and more than 1 million saw drops of at least 150 points, The New York Fed said.

Credit scores can fall by as little as an average of 74 points to as much as 177 points, depending on the borrower's creditworthiness, The New York Fed said.

Seriously delinquent student loan borrowers with the best credit see the biggest drops.

Poorer credit scores means borrowers will have lower credit limits and higher interest rates for other debt.

"It is unclear whether these penalties will spill over into payment difficulties in other credit products," The New York Fed said.

President Trump has signed his executive order seeking lower prescription drug prices. It gives the pharmaceutical industry 30 days to introduce new, lower prices in the U.S. Violators will face new limits on what the government will pay under Medicare and Medicaid.

The order tasks Health and Human Services Secretary Robert F. Kennedy Jr. to broker new prices for drugs over the next month. If that doesn't work, he will be instructed to develop a new rule tying the price of drugs in the U.S. to the prices paid in other countries. 

"We're going to pay what Europe pays," Trump said in the Monday signing ceremony at the White House. 

The order came as the Republican-led House released its proposed budget that would trim $880 billion from Medicaid. What the net effect of the lower drug prices and the budget cuts will be and whether consumers will enjoy any benefits.

Critics noted that the program does not appear to have any benefit for consumers who have private insurance, since the government has no direct control over what drug companies charge them. 

A "bad deal," drugmakers say

Drug companies, as expected, said the program will be a "bad deal" for patients and the healthcare industry and will hinder spending to develop new drugs. 

“Importing foreign prices from socialist countries would be a bad deal for American patients and workers,” Stephen J. Ubl, the president and CEO of PhRMA, said in a statement. “It would mean less treatments and cures and would jeopardize the hundreds of billions our member companies are planning to invest in America.”

Seniors unsure of the effect

Senior groups were mostly still sorting out their reaction although one, the Senior Citizens League, raised its estimate of next year's COLA — the cost of living increase applied to Social Security beneficiaries. 

"TSCL predicts Social Security’s 2026 COLA will be 2.4 percent, up from last month’s prediction of 2.3 percent. That’s also 0.1 percentage points lower than 2025’s COLA, which was 2.5 percent," the organization said in an email to ConsumerAffairs.

Whatever programs are adopted, TSCL said seniors are likely to continue facing economic headwinds because of drug prices.

"The 2025 Senior Survey, which featured responses from 1,920 Social Security—eligible Americans, found that 20 percent spent at least $1,000 monthly on healthcare costs," TSCL said. "Meanwhile, it found that 57 percent of American seniors get by on less than $2,000 of take-home income per month."

The survey found that that 39 percent of American seniors rely on Social Security for 100 percent of their income, while 57 percent get by on $2,000 per month or less of monthly take-home earnings.

"For many of these seniors, a COLA that doesn’t keep pace with inflation means a drop in their living standards," the group said.

• Inflation edges up slightly in April: The Consumer Price Index rose 0.2% after a decline in March, with shelter and energy prices driving the increase.

• Overall food prices declined 0.1%, with grocery costs falling but restaurant prices continuing to rise.

• The CPI rose 2.3% year-over-year, the smallest annual gain since February 2021.

Inflation showed modest movement in April as consumer prices increased slightly following a rare monthly dip, according to the latest data from the U.S. Bureau of Labor Statistics. The Consumer Price Index for All Urban Consumers rose 0.2% in April on a seasonally adjusted basis, reversing a 0.1% decline in March. 

Economists expected to see a higher rate of inflation in April because of tariffs. But over the past 12 months, inflation rose 2.3%, marking the slowest annual increase in more than four years.

Housing costs continued to be a major source of inflation, with the shelter index climbing 0.3% in April. This single component accounted for more than half of the month’s overall CPI increase. Rising costs in electricity and natural gas—up 0.8% and 3.7%, respectively—also contributed, although gasoline prices dipped 0.1% on a seasonally adjusted basis.

While energy prices rose 0.7% in April, the energy index remains down 3.7% compared to the same time last year. Gasoline prices have fallen 11.8% year-over-year, while natural gas has spiked 15.7%.

What does it mean for interest rates?

“We are one step closer to a rate cut by the Federal Reserve as consumer price inflation continues to calm down. The latest inflation rate of 2.3% is the slowest rise in about four years, but still above the target inflation rate of 2%," said Lawrence Yun, chief economist at the National Association of Realtors, in an email to ConsumerAffairs.

"Prescription medicine prices rose by 2.3% even as non-prescription drug costs fell by 1%. These costs could dramatically change in the upcoming months, though they comprise just 1.3% of the overall consumer budget and inflation calculation. Medical service costs like visits to the doctor and hospitals take up a larger proportion, and these costs rose by 3.1%," Yun said.

But, as always, housing costs are the elephant in the room. "Comprising one-third of the budget, that cost rose by a hefty 4%," Yun said. "Getting shelter costs under control with more housing supply (and not via disastrous rent control) will be the key to getting overall inflation fully tamed and for the Federal Reserve to 'normalize,' which in my view means 4 to 6 additional rate cuts. 

"Fed rate cuts with high inflation will not result in lower mortgage rates. However, rate cuts because of falling inflation will mean meaningfully lower mortgage rates,” Yun added.

Grocery prices fall while restaurant prices rise

Food prices presented a mixed picture in the latest calculations. Overall, the food index declined 0.1% in April, its first drop in months. Grocery store prices fell 0.4%, led by a steep 12.7% decline in egg prices and a broader 1.6% drop in the meats, poultry, fish, and eggs category.

At the same time, prices for food consumed away from home increased 0.4%, with full-service meal costs rising 0.6%. Over the past year, dining out has become 3.9% more expensive, while grocery prices have climbed a more modest 2.0%.

Excluding volatile food and energy prices, the “core” CPI rose 0.2% in April, following a 0.1% rise in March. Among the categories showing increases were household furnishings, medical care (up 0.5%), and car insurance (up 0.6%). However, airfares declined by 2.8%, and used car prices dropped 0.5%.

Over the past 12 months, core inflation increased 2.8%. Medical care, education, and motor vehicle insurance all posted annual gains above the headline rate, with motor vehicle insurance jumping 6.4% year-over-year.

• The Trump administration has lowered the tariff on low-value shipments (under $800) from China and Hong Kong from 120% to 54%, as part of a temporary trade truce.

• The de minimis exemption, previously used by Chinese e-commerce giants like Temu and Shein to avoid tariffs, has been effectively nullified by the new policy.

• Imports under $800 will now face either a 54% tariff or a $100 flat fee per parcel, with exporters choosing the payment method; the planned increase of the fee in June has been scrapped.

A day after announcing a temporary trade truce with China which significantly lowered tariffs, the Trump administration has gone a step further, cutting tariffs on low-value shipments from China. The levy is still high – 54% – but it had been 120%.

The executive order cuts the tariff on what is known as the “de minimis” tariff on shipments from China, including Hong Kong. The de minimis exemption previously allowed companies to avoid tariffs and customs inspections if the retail value was less than $800.

Chinese retailers Temu and Shein used the exemption to ship cheap goods directly to U.S. consumers without paying the extra tax.

This exemption significantly benefited fast-growing e-commerce companies like Shein and Temu, whose business models depend on shipping low-cost products directly to U.S. consumers from Chinese warehouses.

However, critics argued that this loophole gave foreign companies an unfair advantage over domestic retailers, who must comply with tariff and tax regulations. By bypassing duties, Chinese sellers could undercut American brands on price, often dramatically.

Starting May 14, imports from China and Hong Kong that are priced under the $800 threshold will be subject to either the 54% tariff or a flat $100 fee for each parcel. Exporters can decide whether to pay the tariff or flat fee. The White House said previous plans to double the $100 fee starting in June are no longer being considered.

• Yale researchers developed two indices—GERi-State and GERi-County—to measure how state and county-level conditions impact the health of older Americans.

• Seniors living in the bottom 20% of these indices are at significantly higher risk for early mortality, frailty, dementia, and disability.

• The indices focus on modifiable, policy-relevant variables like physician density, poverty rates, and tobacco taxes to inform targeted health interventions.

New research from Yale School of Medicine has identified how where older Americans live may directly influence their health and longevity. Two recently published studies, led by Dr. Robert Becher, reveal that geographic disadvantage, rooted in economic, social, and policy factors, can significantly increase the risk of death and disability among Americans aged 65 and older.

Becher and his team developed two novel indices to better understand these risks: the GERi-State index, which assesses health policy and socioeconomic disadvantage at the state level, and the GERi-County index, which captures multi-dimensional disadvantage at the county level.

These tools were designed using measurable, modifiable factors like preventable hospitalizations, median income, physician availability, and tobacco taxes.

Geography, not genetics

The researchers found that older adults living in the lowest 20% of both indices faced the greatest health threats. Specifically, those in disadvantaged counties had higher rates of frailty, dementia, and disability, as well as a 10% increased risk of premature death across two separate five-year periods. 

Meanwhile, those in disadvantaged states showed an 11% to 14% increased risk of early mortality.

These findings underscore the idea that “place matters,” a theme Becher has observed in his surgical practice. “One of the most consistent findings in the medical literature is that place matters,” Becher said in a press release, noting that the built environment and policy context can serve as "fundamental determinants" of older adults’ health.

The research team, made up of experts from Yale’s School of Medicine, School of Public Health, and Faculty of Arts and Sciences, constructed the indices using data from 2006 to 2019 and focused on variables that policymakers could change. For instance, low physician density, high poverty rates, and suboptimal health policies were all linked to worse health outcomes.

Using these indices, the researchers identified 10 states and 627 counties across the U.S. as disadvantaged, with most of the affected states located in the South. Disadvantaged counties were more broadly dispersed, including in the South, Southwest, and Western U.S.

• Gold prices dropped over 3% to $2,228 per ounce after a temporary tariff rollback between the U.S. and China reduced the metal's appeal as a safe-haven asset.

• Despite the dip, analysts from Zaner Metals and Citi expect gold to stabilize and potentially rise, with long-term projections ranging from $3,150 to as high as $4,000.

• Ongoing gold purchases by central banks—especially in China—signal strong demand and reinforce gold’s role as a hedge amid persistent global economic uncertainties.

Gold prices fell by more than 3% on Monday, falling to $2,228 per ounce, following the announcement of a temporary tariff reduction between the U.S. and China.

Gold had rallied as a safe haven from the economic uncertainty caused by a potential trade war. The sudden de-escalation in trade tensions seemed to diminish  gold's appeal as a safe-haven asset -- at  least for the moment. 

But despite this short-term dip, some market analysts maintain a bullish outlook for gold as an investment and hedge. Peter Grant of Zaner Metals anticipates that gold will consolidate between $3,200 and $3,500, with potential dips to $3,150, but expects a retest of the $3,500 level soon. 

Similarly, Citi has revised its short-term gold outlook, projecting price consolidation in the $3,000 to $3,300 range and lowering its zero- to 3-month target to $3,150. 

Other long-term forecasts also remain optimistic. Business Insider reports Jeff Gundlach, CEO of DoubleLine Capital, predicts a continued bullish trend for gold, forecasting a price surge up to $4,000 per ounce—a 20% rise from its current level. 

Rising price targets

Goldman Sachs and UBS have also raised their gold price targets to $3,500, citing rising tariffs, slowing growth, elevated inflation, and lingering geopolitical risks. 

Concerns about trade aren’t the only factor supporting gold prices. Central banks continue to add to their gold reserves, supporting the price. According to JPMorgan, central bank buying, particularly from China, could be a source of stronger demand in 2025. This trend reflects increasing demand for safe-haven investments in unstable times. 

While gold prices have recently dipped due to improved U.S.-China trade relations, analysts suggest that the metal's long-term prospects remain strong, supported by central bank buying, investor demand, and ongoing economic uncertainties.

In Tuesday's futures trading, Gold reclaimed 0.81% of Monday's decline.