CNN
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Americans feel fairly secure in their jobs, expect to continue earning and spending more than they did before the pandemic, and inflation is slowing, according to new survey data released Tuesday by the Federal Reserve. He says he doesn't think it's gotten that bad. yoke. But they are increasingly concerned about mounting credit card debt.
Debt balances are rising, and U.S. consumers are feeling anxious On sustainability: Not since April 2020 have Americans been more worried about missing out on minimum debt payments.
New York Fed September 2024 Consumer Expectations Survey It was revealed that the average probability of not being able to pay the minimum debt in the next three months increased for the fourth consecutive month to 14.2%. Excluding the pandemic, this is the highest expected delinquency rate seen in the monthly survey since January 2017.
The contrast seen in the latest New York Fed survey is broadly consistent with what other data has shown for years: The U.S. economy is doing very well, but people aren't feeling all that good about it. said industry senior Ted Rothman. Bankrate analyst.
“Inflation is still a big problem. Even though we've been down, I still feel like it's still the dominant theme in the economy,” Rothman told CNN in an interview Tuesday. “Inflation is eating up a lot of the gains that people have made. So even though they're working and their wages are going up, a lot of people don't feel good.”
And the cumulative effects of this high inflation are hitting some Americans harder than others, Rothman said, and the data reflects widening income inequality.
“Things are going well for people with higher incomes and better credit. They can still get good credit and generally pay on time,” he said. “If half of you use cards for the convenience and perks, then life is good. Now, for the other half, you're in an even more troublesome situation when you consider potentially long-term credit card debt.” There is a possibility that
Research shows that low-income Americans face higher inflation.
A recently released report found that since 2005, prices for households with the lowest incomes have increased by an average of 64%, while prices typically paid by households with the highest incomes have increased by 57%. Analysis of the Minneapolis Federal Reserve System Bureau of Labor Statistics data.
Latest data from the New York Fed shows that delinquency rates for people making more than $100,000 a year spiked last month (from 6.4% to 8.4%), while those making less than $50,000 a year were more likely to miss a payment by 20%. . year.
