In the U.S., lower-income borrowers are increasingly unable to meet their loan obligations, prompting banks to tighten credit availability for products like credit cards and car loans. This financial strain is partly due to dwindling savings and persistent high interest rates which are exacerbating the budget constraints of households earning under $45,000 annually. The situation is starkly different for higher-income groups, who continue to demonstrate financial resilience. Austan Goolsbee of the Chicago Federal Reserve and Arijit Roy of U.S. Bancorp highlighted concerns about rising consumer delinquencies and default rates, especially among first-time and low-income borrowers, signaling potential worsening economic conditions.
Posted: 2024-04-22 10:56:31.000000