Consumers are struggling to manage their credit card debt, with severe delinquencies hitting a 14-year high. Younger adults are most affected, juggling lower earnings and savings. As borrowing costs rise, consumer spending—a key economic driver—faces challenges. Retailers report a shift towards essential purchases, reflecting growing financial strain. The Federal Reserve's rate hikes aim to curb inflation but risk tipping the economy into recession. While Wall Street remains optimistic, the situation highlights the delicate balance between maintaining growth and managing debt.
Read the full article here.