U.S. households are facing mounting cost-of-living pressures ahead of the midterm elections, with the average 30-year fixed mortgage rate rising to 6.95% from 6.76% a week earlier, according to Freddie Mac. The rate is the highest since January 2025 and more than double its level of just above 3% in early 2022. The Federal Reserve raised its benchmark rate by 25 basis points to 3.75%-4.0%, its first increase since 2023, and left open the possibility of further hikes before year-end. The 10-year Treasury yield also briefly exceeded 5% this week. Energy costs have added to the pressure, with diesel reaching a record $6.40 a gallon and gasoline averaging about $4.44. August consumer prices were up 3.4% from a year earlier and 27% from January 2021, while hourly wages rose 3.1% over the same period and have lagged inflation for five consecutive months. The economy added 162,000 jobs in August, unemployment held at 4.1%, retail sales beat expectations and household net worth reached $186 trillion in the second quarter. However, the misery index rose to 7.5 from 6.7 in October 2024, while consumer behavior and political debate increasingly reflect financial strain. President Trump has proposed a $5,000 Trump dividend for every adult American citizen if Republicans retain majorities in Congress, subject to congressional approval. Voters are expected to judge the administration and Republicans by whether wages have improved their ability to afford current prices.