Many Fed officials pointed out that poorer households faced "increasing strains" with high living costs, while savings accumulated during the pandemic had largely run dry, according to the minutes from the June 11-12 meeting.
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Nearly 2/3 of Americans say high inflation has made their financial situation worse, especially families w/lower incomes a Federal Reserve study found. 17% of adults said they could not pay all of their bills from the prior month in full because they did not have enough money. In some cases, they did not have enough to eat or skipped needed medical care because of the cost. - We've seen record liquidations nationally of gold & silver in order to cover 'emergency' expenses instead of holding it for a longer term, exposing the reality of this economic situation, at the base level. https://lnkd.in/gcFGzZgh
Two-thirds of Americans say inflation has made their financial situation worse
marketwatch.com
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US households continued to feel pinched by inflation in late 2023 even as price pressures ebbed, the Federal Reserve reported yesterday, with most Americans saying their financial situation had changed little in the last year, while parents reported times had gotten harder. About 72 per cent of adults were doing at least okay financially as of October 2023, the Fed’s annual survey on household economics and decision-making showed. Read more: https://lnkd.in/dc8sg8TX
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Recent inflation rates have contributed to the financial strain we are all feeling. A CBS news report says Americans are spending over $700 a month more than they were pre-pandemic. But LISEP’s True Living Cost index (www.lisep.org/tlc) indicates this is nothing new. The cost of necessities required to maintain a basic standard of living – such as shelter, food, and healthcare – have been an ongoing challenge for low-and-middle-income Americans for more than 20 years. #costofliving https://lnkd.in/ekxfMYsJ
Inflation forces US families to spend $709 more a month than two years ago
cbsnews.com
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Managing Partner, Canapi | CEO, Ludwig Advisors | Chair, Ludwig Institute for Shared Economic Prosperity | Founder, Promontory family of companies | Author, The Vanishing American Dream | Fmr Comptroller of the Currency
Recent inflation rates have contributed to the financial strain we are all feeling. A CBS news report says Americans are spending over $700 a month more than they were pre-pandemic. But LISEP’s True Living Cost index (www.lisep.org/tlc) indicates this is nothing new. The cost of necessities required to maintain a basic standard of living – such as shelter, food, and healthcare – have been an ongoing challenge for low-and-middle-income Americans for more than 20 years. #costofliving https://lnkd.in/eaDU8e9X
Inflation forces US families to spend $709 more a month than two years ago
cbsnews.com
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Financial Associate helping families and professional individuals to achieve their financial goals through personalized advice and solutions.
Americans are Saving Less! During this period of economic uncertainty, Americans are saving less. * That number is much lower than the 8.9% average that Americans practiced for about a decade. * 49% of adults have less savings or no savings compared to a year ago, according to a Bankrate. Bottom line: Instead of saving for a rainy day, consumers continue to spend. The rate of spending has helped the economy grow and could ultimately be the reason why the nation skips a recession despite plenty of gloomy forecasts. #savings #USA #spending #forrainydays
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Inflation may have slowed last year, but it continued to deal heavy blows on Americans’ livelihoods: Nearly two-thirds of US adults were worse off because of it, and roughly 1 in 6 couldn’t pay all their monthly bills, new Federal Reserve data shows. ➡️ The Fed released its Economic Well-Being of US Households report for 2023, examining the financial lives of US adults and their families. ➡️ The report found that 72% of adults surveyed said they were “doing OK” financially, notching a similar reading to 2022 but landing well below the high of 78% hit in 2021. Read more from CNN's Alicia Wallace: https://cnn.it/3Vb0sy4
High inflation made finances worse for 65% of Americans in 2023
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The Harris Poll/ Bloomberg News special investigation of Middle Class Americans released today finds (57%) hurting from higher borrowing costs, with (44%) are stressed about economy than (39%) in March during the regional bank meltdowns. (61%) say their personal financial situation is worse or unchanged from a year ago. And when asked about the year ahead, just (33%) said they expected their own finances to improve. In our poll of 4,166 Americans, including 1,478 middle-class adults, three-quarters say they are paying more and more for goods and services, while more than two-thirds said higher prices for groceries, insurance, and rent or mortgage payments were hurting them. And (63%) also said that stagnant wages were also hurting their finances and (42%) said their costs were rising faster than their wages. I think you can sum it up like this: Economists aren’t sitting at kitchen tables with middle class America. For most, their paychecks are still chasing their bills and they feel they’re falling further and further behind. This is our third-installment on #TheMiddleClass with Bloomberg News. We'll continue to monitor this election-shaping cohort as we move forward. Stagwell #economics #personalfinances #economy #election2024 https://lnkd.in/gAW6AsXF
Middle-Class Americans Are Rattled by Fed’s Fight Against Inflation
bloomberg.com
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𝐒𝐚𝐧𝐝𝐡𝐢𝐥𝐥’𝐬 𝐒𝐭𝐚𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐖𝐞𝐞𝐤: 𝐒𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐌𝐨𝐫𝐞, 𝐒𝐚𝐯𝐢𝐧𝐠 𝐋𝐞𝐬𝐬 It is no secret that everyday Americans have been crippled by inflation in recent years. Studies show typical U.S. households spent $709 more in July than they did two years ago to buy the same goods and services. To further uncover inflation’s detrimental impact on American household spending, it pays to compare personal consumption to excess savings. The chart below highlights the accumulation of excess savings in 2020 and 2021 with a significant drawdown in those savings since 2022—well below pre-pandemic trendlines. If this dynamic continues—and Americans spend more while saving less—aggregate excess savings could be depleted by the conclusion of 2023. Expect household balance sheets to remain fragile throughout the remainder of the year as the Federal Reserve attempts to cool the economy and wrangle inflation down to its 2% target. Sources: CNN, Moody's Analytics, Federal Reserve Bank of San Francisco, Bureau of Economic Analysis #SandhillStatOfTheWeek #ConsumerSpending #PersonalSavings #PandemicSavings #Inflation
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The impact of inflation is reducing feelings of financial well-being, according to the latest survey from the Federal Reserve. While inflation has eased over the last few years, people are still struggling to adjust to the higher level of prices. About 64% of parents with children under 18 reported that they were doing okay financially, down from 69% last year. Many respondents said they pay as much for childcare as they pay on housing. This report is consistent with others that show that while the economy is broadly performing well, consumers don't feel confident about the economy. This could have implications on elections this year and it illustrates why the Fed's job of returning inflation back to normal is so important. https://lnkd.in/grA_c7Zq https://lnkd.in/gGeXqB36 https://lnkd.in/gu8MuVVm. #economy #inflation #federalreserve
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US household expectations for real income growth over the next 1-2 years have plummeted to a 10-year low. This decline is the steepest we've seen in at least 60 years, surpassing even the 2008 Financial Crisis. Income growth expectations this low have only occurred in 1980, 2008, and early 2010s Consumers' assessment of their overall financial situation is at its worst since 2022 Households are grappling with the double whammy of inflation and high interest rates What's driving this pessimism? Persistent inflation eroding purchasing power Rising interest rates increasing borrowing costs Economic uncertainty clouding future prospects Despite these challenges, some data suggests a silver lining. Excluding government transfers, real income growth is actually accelerating. Additionally, the labor market remains resilient, with the unemployment rate holding steady below 4% for 26 consecutive months. How can policymakers and businesses address this gap between economic data and household sentiment? #EconomicOutlook #HouseholdFinances #InflationImpact #FinancialWellbeing
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