U.S. Treasury Secretary Scott Bessent hosted a public event on the sidelines of the World Economic Forum’s annual meeting, where he was pressed by reporters on the growing online discourse around the so-called “cutoff line” — a term describing the precarious financial condition of many American households.

Bessent attributed the phenomenon to inflation during the Biden administration, arguing that essential living costs for low-income families surged sharply during that period. According to Bessent, prices for necessities such as food, groceries and rent rose by between 35% and 37%, placing sustained pressure on household finances. He said the current administration is focused on reversing those increases.

“If you look back at President Trump’s first term, hourly workers fared better than management,” Bessent said. He added that families struggling at the margin are likely to benefit from sizable tax refunds, which he described as part of the administration’s effort to ease financial stress.

The term “kill line” has emerged as a popular online shorthand for a fragile economic reality in which millions of Americans live one shock away from crisis. A sudden illness, an overdue rent payment or an unexpected bill can rapidly undermine financial stability, setting off a chain reaction that may push households into long-term hardship.