President’s Focus on Lower Prices May Raise Consumer Expectations for Price Cuts

Our Privacy Policy has been updated! The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you acknowledge our privacy policy and consent to the use of cookies.

Navigating Washington: Insights for Business

President’s Focus on Lower Prices May Raise Consumer Expectations for Price Cuts

24 January 2025 / Essay

One of the executive orders (EOs) that the new administration issued during its first couple of days in office directs federal agencies to review how their policies could be changed to reduce consumer prices. It mentions product/service categories that are among US consumers’ main expenses, including housing, food, energy, and health care—all essential categories. Cost cutting could include loosening regulations for new housing to expand supply, cutting administrative expenses to lower health care cost, and removing climate-friendly regulations that inflate the cost of energy, food, and more.

Key Insights

This specific EO on reducing prices is aimed at federal agencies, highlighting for the public that prices are influenced by public policy and thus potentially tempering recent criticism of companies’ pricing practices. It contrasts with an alternative proposal on the campaign trail, namely that of banning corporate price gouging to keep prices in check (analyses find that corporate profiteering didn’t drive inflation). Our research shows that three-quarters of US consumers want the government to take action on prices (see graphic). This EO delivers on exactly that, as do other EOs that specifically aim to reduce the price of energy, including one that declares a national energy emergency to authorize the government to better leverage domestic energy resources, and another that allows drilling in Alaska. Moreover, the new administration has called on the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices.
The president’s spotlight on lowering prices could raise consumer expectations for broader-based corporate price cuts—beyond the categories mentioned in the EO on reducing prices. It could exacerbate consumers’ perceptions of high prices and intensify their desire for lower price tags—regardless of whether the government or companies drive the price cuts. This may place additional pressure on companies, especially those that wouldn’t benefit from federal agencies’ policy revisions. After all, higher prices are by far US consumers’ number one concern for 2025 (67%), ahead of higher taxes (41%), while lower prices (59%) and the ability to save more money (45%) are their top two hopes, according to our research. We also found the price of goods/services is the clearly leading driver of customer dissatisfaction, ahead of data privacy and customer service quality.

One of the executive orders (EOs) that the new administration issued during its first couple of days in office directs federal agencies to review how their policies could be changed to reduce consumer prices. It mentions product/service categories that are among US consumers’ main expenses, including housing, food, energy, and health care—all essential categories. Cost cutting could include loosening regulations for new housing to expand supply, cutting administrative expenses to lower health care cost, and removing climate-friendly regulations that inflate the cost of energy, food, and more.

Key Insights

This specific EO on reducing prices is aimed at federal agencies, highlighting for the public that prices are influenced by public policy and thus potentially tempering recent criticism of companies’ pricing practices. It contrasts with an alternative proposal on the campaign trail, namely that of banning corporate price gouging to keep prices in check (analyses find that corporate profiteering didn’t drive inflation). Our research shows that three-quarters of US consumers want the government to take action on prices (see graphic). This EO delivers on exactly that, as do other EOs that specifically aim to reduce the price of energy, including one that declares a national energy emergency to authorize the government to better leverage domestic energy resources, and another that allows drilling in Alaska. Moreover, the new administration has called on the Organization of the Petroleum Exporting Countries (OPEC) to lower oil prices.
The president’s spotlight on lowering prices could raise consumer expectations for broader-based corporate price cuts—beyond the categories mentioned in the EO on reducing prices. It could exacerbate consumers’ perceptions of high prices and intensify their desire for lower price tags—regardless of whether the government or companies drive the price cuts. This may place additional pressure on companies, especially those that wouldn’t benefit from federal agencies’ policy revisions. After all, higher prices are by far US consumers’ number one concern for 2025 (67%), ahead of higher taxes (41%), while lower prices (59%) and the ability to save more money (45%) are their top two hopes, according to our research. We also found the price of goods/services is the clearly leading driver of customer dissatisfaction, ahead of data privacy and customer service quality.

US consumers want governmental action to lower high prices

Additional Implications for Companies

If governmental efforts succeed in lowering prices, companies might benefit from increasing consumer spending power and satisfaction. The government initiatives address elevated prices, which has been US consumers’ top persistent pain point since mid-2020. While inflation gradually declined from its June 2022 peak of 9.1% to 2.9% in December 2024, prices remain at an elevated level (when people hear inflation is decreasing, they often misinterpret it as a sign that prices are also decreasi

This publication is available to you, but you need to sign in to myTCB^® or create an account to access it.To learn more about becoming a Member click here. To check if your company is a Member, click here

Sign In
Create An Account

By Clicking 'Create Account',
You Agree To Our Terms Of Use

Create Account

Members of The Conference Board get exclusive access to Trusted Insights for What’s Ahead^® through publications, Conferences and events, webcasts, podcasts, data & analysis, and Member Communities.

Author

Denise Dahlhoff, PhD

Denise Dahlhoff, PhD

Director, Marketing & Communications Research
The Conference Board

Other Related Resources

Newsletters & Alerts

Policy Alert: Development of Alaska

Policy Alert: Development of Alaska

January 24, 2025

Newsletters & Alerts

Policy Alert: Rescinding AI Safety Executive Order

Policy Alert: Rescinding AI Safety Executive Order

January 24, 2025

Newsletters & Alerts

Policy Alert: Offshore Wind Leasing Review

Policy Alert: Offshore Wind Leasing Review

January 24, 2025

Newsletters & Alerts

Policy Alert: Rescinding Executive Order on the Census

Policy Alert: Rescinding Executive Order on the Census

January 24, 2025

Newsletters & Alerts

Policy Alert: US AI Leadership Policy Executive Order

Policy Alert: US AI Leadership Policy Executive Order

January 24, 2025

Newsletters & Alerts

Policy Alert: Delayed Implementation of TikTok Ban

Policy Alert: Delayed Implementation of TikTok Ban

January 24, 2025

Newsletters & Alerts

Policy Alert: Climate-Related Financial Risk

Policy Alert: Climate-Related Financial Risk

January 24, 2025

Newsletters & Alerts

Policy Alert: Rescinding Voting Access Executive Order

Policy Alert: Rescinding Voting Access Executive Order

January 24, 2025

Newsletters & Alerts

Policy Alert: OECD Global Tax Agreement Withdrawal

Policy Alert: OECD Global Tax Agreement Withdrawal

January 24, 2025

Quick Take

Leaders Who Remain Faithful to the Core Inclusion Mission Have Nothing to Fear

Leaders Who Remain Faithful to the Core Inclusion Mission Have Nothing to Fear

January 23, 2025

Report

America in Perspective: Policy Priorities for 2025

America in Perspective: Policy Priorities for 2025

January 23, 2025

Article

Regulation: Early Actions of the Administration

Regulation: Early Actions of the Administration

January 22, 2025

Article

Tariffs: Not Yet but Still a Threat

Tariffs: Not Yet but Still a Threat

January 22, 2025

Article

Immigration: Early Actions of the Administration

Immigration: Early Actions of the Administration

January 22, 2025

Article

CED Letter to Congressional Leadership: Public Policy Priorities for 2025

CED Letter to Congressional Leadership: Public Policy Priorities for 2025

January 21, 2025

Article

CED Letter to President Trump: Public Policy Priorities for 2025

CED Letter to President Trump: Public Policy Priorities for 2025

January 21, 2025

Article

The Panama Canal and US Foreign Policy

The Panama Canal and US Foreign Policy

January 17, 2025

Article

January 10, 2025

Report

The Road to a Deal: Four Scenarios

The Road to a Deal: Four Scenarios

January 09, 2025

Report

Default Is Not an Option

Default Is Not an Option

January 09, 2025

Report

The Cost of Congressional Indecision: Stress, Disruption, and Inflation

The Cost of Congressional Indecision: Stress, Disruption, and Inflation

January 09, 2025

Newsletters & Alerts

Policy Alert: Development of Alaska

Policy Alert: Development of Alaska

January 24, 2025

Newsletters & Alerts

Policy Alert: Rescinding AI Safety Executive Order

Policy Alert: Rescinding AI Safety Executive Order

January 24, 2025

Newsletters & Alerts

Policy Alert: Offshore Wind Leasing Review

Policy Alert: Offshore Wind Leasing Review

January 24, 2025

On Demand Webcasts

C-Suite Outlook 2025 & Trump’s Day 1

C-Suite Outlook 2025 & Trump’s Day 1

January 22, 2025

On Demand Webcasts

CEO Roundtable: Policy Priorities for 2025

CEO Roundtable: Policy Priorities for 2025

December 12, 2024

On Demand Webcasts

The Future of Greening and Industrial Policies Post Election

The Future of Greening and Industrial Policies Post Election

November 26, 2024

On Demand Webcasts

2024 Election Implications for the US Labor Market

2024 Election Implications for the US Labor Market

November 20, 2024

On Demand Webcasts

C-Suite Outlook 2025 & Trump’s Day 1

C-Suite Outlook 2025 & Trump’s Day 1

January 22, 2025

On Demand Webcasts

CEO Roundtable: Policy Priorities for 2025

CEO Roundtable: Policy Priorities for 2025

December 12, 2024

On Demand Webcasts

The Future of Greening and Industrial Policies Post Election

The Future of Greening and Industrial Policies Post Election

November 26, 2024

Conference Board Sample Web Chat