Voter frustration over affordability fueled Democratic wins in Nov. 4’s state and local elections, and on top of that, Americans are becoming uneasy about the job market too.

Some 55% of employed Americans say they’re concerned about losing their jobs, according to a recent Harris Poll conducted for Bloomberg News. That angst follows a drumbeat of layoff announcements by major employers, including Amazon.com, Target and Starbucks. Outplacement firm Challenger, Gray & Christmas Inc. calculated the most job cut announcements for any October in more than two decades.

It comes layered on top of households’ exasperation over the cost of living. A 62% majority in the Oct. 23-25 poll said the cost of their everyday items had climbed over the last month and nearly half of those people said the increases have been difficult to afford.

President Donald Trump and his aides have responded by putting a positive spin on the economic indicators and deflecting blame elsewhere — tactics President Joe Biden also used, to little avail — along with assuring things will get better. The risk is that, should the job market and prices fail to shift enough to satisfy voters, Republicans risk losing control of Congress in next year’s midterm elections.

IRS boosts 401(K) contribution limits

Americans will be allowed to contribute more of their money to 401(k) and similar retirement saving plans next year.

The IRS said Thursday the maximum contribution that an individual can make in 2026 to a 401(k), 403(b) and most 457 plans will be $24,500. That’s up from $23,500 this year.

People aged 50 and over, who have the option to make additional “catch-up” contributions to 401(k) and similar plans, will be able to contribute up to $8,000 next year, up from $7,500 this year. That’s means a 401(k) saver who is 50 or older will be able to contribute a maximum of $32,500 to their retirement plan annually, starting in 2026.

Workers between the ages of 60 and 63 will be allowed catch-up retirement plan contributions of up to $11,250 annually, unchanged from this year.

The IRS also raised the 2026 annual contribution limits on individual retirement arrangements, or IRAs, to $7,500, up from $7,000 this year. The IRA “catch-up” contribution limit will include an annual cost of living adjustment of $100, increasing it to $1,100 in 2026.

The IRS also increased for 2026 the income ranges for determining whether someone is eligible to make deductible contributions to traditional IRAs, Roth IRAs or to claim the “saver’s credit,” also known as the retirement savings contributions credit.

bank president fears inflation risks ahead

Federal Reserve Bank of Atlanta President Raphael Bostic said inflation remains the greater risk to the economy, and he favors keeping rates steady until it is clear the central bank is on track to reach its 2% goal.

Bostic, who announced earlier on Wednesday that he plans to retire from the Fed when his current term ends in February, said policymakers are facing a challenging environment with the labor market softening at the same time that inflation remains above target. Still, he urged caution about lowering rates further, warning that accommodative monetary policy could reignite inflation.

“Despite shifts in the labor market, the clearer and urgent risk is still price stability,” Bostic said Wednesday in remarks prepared for an event with the Atlanta Economics Club.

Toyota pledges to expand U.S. hub

Toyota Motor Corp. confirmed it will plow as much as $10 billion into the U.S. over the next five years to boost its local operations, less than a month after President Donald Trump flagged that the Japanese carmaker planned such an investment.

The announcement clears up a confusing moment from Trump’s visit to Tokyo last month, when he said Toyota would build plants all over the US “to the tune of over $10 billion.” At the time, the automaker wouldn’t confirm such a plan, calling it mere speculation.

The automaker provided no further details on how it will spend the funds. David Christ, Toyota’s US sales chief, said that will be revealed at a later date.

“We’ll announce the investment plans for the $10 billion as we get closer to making the investments,” Christ told reporters Wednesday at a ceremony for a new battery plant in North Carolina.

Compiled from Bloomberg and Associated Press reports.