U.S. Consumers are Scaling Back Their Debts, According to Fed Data

Fed data suggested that U.S. consumers – particularly sub-prime consumers – are pulling back their spending. Net charge-offs on credit cards have dropped for the first time in three years, according to Q2 earnings reports. Delinquencies across auto and credit card loans fell at some of the largest issuing firms. These trends point to U.S. consumers leveling out – both borrowing less and better managing their debts. Additionally, consumers seem to be borrowing less due to tightening lending standards post-pandemic and cost-barriers associated with credit card interest rates.  

Read More