How much is the war hitting American's bottom line?

This episode of Consider This from NPR examines how the ongoing U.S.-Israel conflict with Iran is impacting the American economy, challenging President Trump's claim that the economy is 'roaring.' Despite rising gas prices—now averaging $4.48 per gallon, up from $3.17 a year ago—economic indicators like consumer confidence are at record lows, particularly according to the University of Michigan's Consumer Sentiment Index. Economist Martha Gimbel from Yale’s Budget Lab explains that energy prices are a critical economic signal because they're unavoidable, highly visible, and ripple through nearly every other sector, driving up costs for goods, services, and housing. She highlights that the war has disrupted oil supply by closing the Strait of Hormuz, damaged production infrastructure, and made it unlikely the Federal Reserve will cut interest rates, keeping mortgage rates high and worsening housing affordability. Even if the war ended immediately, long-term supply damage would continue to pressure prices. The episode underscores that while the economy isn’t collapsing, it’s under significant strain from war-driven inflation and structural challenges, with no easy policy fixes beyond ending the conflict itself.