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Inflation has 61% of Americans living paycheck to paycheck and Feds considering raising interest rates again

Fed-Rate-Outlook

Important Takeaways:

  • 61% of Americans are living paycheck to paycheck — inflation is still squeezing budgets
  • The number of Americans who say they are stretched thin has remained stubbornly high, according to several reports.
  • Federal Reserve Chair Jerome Powell recently called for continued vigilance in the fight against inflation, warning there may even be more interest rate increases to come.
  • The battle against inflation is not over.
  • As of July, 61% of adults still said they are living paycheck to paycheck, according to a new LendingClub report, slightly more than last year’s 59%.
  • June and July both saw easing in the pace of price increases, with core inflation up 0.2% for each month, according to the U.S. Bureau of Labor Statistics.
  • But in recent remarks, Federal Reserve Chair Jerome Powell said inflation “remains too high” despite those positive indicators, and warned that more interest rate hikes are still possible.
  • Central bank officials have already raised rates 11 times, pushing the Fed’s key interest rate to a target range of 5.25% to 5.5%, the highest level in more than 22 years.
  • Now, 78% of consumers earning less than $50,000 a year and 65% of those earning between $50,000 and $100,000 were living paycheck to paycheck in July, both up from a year ago

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Inflation is new norm as 60% of Americans live paycheck to paycheck

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.

Important Takeaways:

  • 60% of Americans live paycheck to paycheck — ‘inflation is part of their everyday lives,’ expert says
  • Even as the cost of living remains high, the number of Americans living paycheck to paycheck fell to 60% in January, according to a recent report.
  • 45% of high-income earners, were living paycheck to paycheck, according to a new LendingClub report.
  • “Consumers have accepted that inflation is part of their everyday lives,” says LendingClub’s Anuj Nayar.
  • A few key money moves can help your financial standing amid higher prices.
  • At the end of 2022, credit card debt hit a record $930.6 billion, an 18.5% spike from a year earlier, and average credit card balance rose to $5,805, according to the latest report by TransUnion.
  • Total household debt also increased by 2.4% to $16.9 trillion in the fourth quarter of last year, the Federal Reserve Bank of New York found.

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