Consumers are struggling to pay their credit card bills, hitting a 14-year high in severe delinquencies. This trend, coupled with high inflation and expensive borrowing rates, raises concerns about the future of consumer spending and the broader economy. Those in their 20s and 30s are particularly affected due to lower earnings and savings. While the labor market remains robust, any weakening could exacerbate financial instability. Retail giants like Walmart and Starbucks report spending shifts towards necessities, signaling consumer fatigue. Wall Street remains optimistic, but the Fed's challenge of managing inflation without triggering a recession complicates the outlook.
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