Fox Business Network host Charles Payne expressed concern on Friday over a sharp decline in consumer spending, calling the trend “shocking” and warning that the economic boom of recent years may be coming to an end.
“A couple of days ago, Bank of America released credit card data, and it was scary. I mean, a shocking decline in spending at restaurants, airlines, and hotels,” Payne said during an appearance on Fox Business Network’s “Mornings With Maria.”
He also pointed to recent polling data showing a significant drop in the number of Americans planning to travel in the coming months, suggesting that consumer confidence has weakened considerably.
Newly released Commerce Department data from February 28 showed that consumer spending in January fell by 0.2 percent from December, marking the biggest drop since February 2021. Payne suggested that the era of easy money and high consumer spending has likely run its course.
“I think the boom times are over. All the free money has been spent,” Payne told host Maria Bartiromo.
During the segment, Payne referenced past economic cycles, noting that tariffs have historically been tied to economic surges, particularly in the 1920s under Republican leadership, an era often cited by President Trump as a model for his trade policies.
Payne argued that high interest rates set by the Federal Reserve are making it harder for everyday Americans to afford basic purchases, even though overall economic data might look strong.
“This is why I have a problem with the Federal Reserve and interest rates—because if they look at aggregate data, it looks great,” Payne said. “But the problem is 10 percent of consumers are doing 50 percent of the buying, and everyone else is struggling because of higher rates. It’s a no-win situation.”
Meanwhile, the February jobs report showed that 151,000 jobs were added to the U.S. economy, with many of them in manufacturing. President Trump pointed to this as proof that his tariff policies and federal workforce reduction efforts are helping to bring jobs back to America.
“You’re going to see it already,” Trump told reporters on Friday. “We already have numerous factories being built or starting to be built—and numerous ones that were being built in other countries have stopped and are now coming here because of the tariffs. That’s a big deal. That’s what you want to hear.”
Despite these assurances, Trump’s shifting tariff policies have caused uncertainty in financial markets. Earlier this week, the president postponed sweeping tariffs on Canada and Mexico while threatening new tariffs on other trade partners. This back-and-forth spooked Wall Street, contributing to one of the worst stock market weeks since September.
With consumer spending slowing, interest rates remaining high, and uncertainty surrounding trade policy, many economic analysts are questioning whether Trump’s economic strategy will continue to support growth—or whether the country is headed for a downturn.