White House economists praise spending while debt relief policies crumble

During a May 2026 interview, the White House’s senior economist asserted that consumer spending was at peak levels, pointing to a rise in credit-card purchases as proof of a healthy economy. Treasury Secretary later added that banks reported strength across all income brackets. Independent data, however, revealed a surge in subprime auto loan delinquencies and a notable jump in farm bankruptcies, with overall personal debt climbing past $18.8 trillion.

Earlier in the year, President Trump proposed a one-year cap on credit-card interest rates, a suggestion dismissed by major banking leaders as harmful to credit access. At the same time, the acting director of the Consumer Financial Protection Bureau has been eliminating agency guidance, claiming previous rules exceeded proper notice-and-comment procedures. These moves occur alongside the termination of the SAVE student-loan repayment plan and the resumption of aggressive debt-collection practices that have already lowered credit scores for millions of borrowers.