In an appearance on “Morning with Maria,” Labor Secretary Lori Chavez Delemer discussed the negative impact of a potential government shutdown on American workers. She noted how such a move could exacerbate the ongoing shortage of air traffic controllers and hinder significant initiatives from the Labor Department.
A recent report has highlighted that household debt in the U.S. reached an unprecedented high in the third quarter of 2025, according to the New York Federal Reserve.
The New York Fed’s Microeconomic Data Center released its quarterly overview on household finances, revealing that total household debt surged by $197 billion to a staggering $18.59 trillion during the third quarter.
Breaking it down, mortgage balances increased by $137 billion, bringing the total to $13.7 trillion as of late September. Meanwhile, credit card debt rose by $24 billion to reach $1.23 trillion. Interestingly, auto loans stayed stable at $1.66 trillion, but student loan balances went up by $15 billion, tallying at $1.65 trillion.
Dong-hoon Lee, an economic research advisor at the New York Fed, commented on the situation, saying, “Household debt is on the rise at a moderate pace, but the delinquency rates remain steady.” He pointed out that the relatively low rates of mortgage delinquency reflect the robustness of the housing market, helped by a healthy supply of homes and strict lending standards.
Despite that, the delinquency rate for household debt rose to 4.5% in Q3, indicating some financial strain among households.
The New York Fed noted various factors that contributed to this increase in early delinquency. While credit card debt and student loans went up, other categories of debt showed a decline.
The rates of serious delinquency — defined as being 90 days or more overdue — for auto loans, credit cards, and mortgages remained relatively stable. However, the overall serious delinquency rate climbed to 3.03%, compared to just 1.68% a year prior.
In October, companies reduced their staff numbers at the fastest rate seen in 22 years, driven by both cost-cutting measures and advancements in AI technology.
Student loan reporting had been paused from the second quarter of 2020 until late 2024, and the resumption has led to a noticeable increase in delinquency rates for student loans. In Q3 2025, about 9.4% of student debt was reported as 90 days or more past due or in default, a slight improvement compared to earlier this year.
Concerns were raised by a former aide to Trump regarding a bipartisan credit card proposal that could negatively impact American consumers.
During the most recent Federal Reserve meeting, Chair Jerome Powell indicated the central bank cut interest rates again amid signs of a weakening labor market.
He pointed out that although the economy appears to be growing, it seems to be benefiting higher-income individuals more than those in lower-income brackets, who are facing their own challenges. “There’s a noticeable split in our economy,” he remarked, highlighting how wealth disparities are influencing consumer behavior.
