US consumers are approaching a reckoning as the excess cash they built up during the pandemic dwindles. How they respond will help determine whether the world’s largest economy can dodge a recession. Over the past two years, consumers have drawn down the more than $2 trillion in extra savings they accumulated during the pandemic in […]
Tag: inflation
US inflation rises in July
Prices for many items continued to rise in the US last month, despite a sharp increase in interest rates to stamp out inflation. The rate of inflation rose at 3.2% over the year to July, driven by higher housing, car insurance and food costs, the Labor Department said. That was up from 3% in June, […]
Biden’s economy looks good on paper, but we’re not feeling it
The United States economy is finally showing signs of significant improvement, much to the relief of President Joe Biden, but one area has challenged a total economic victory for his administration. Last week, the Commerce Department announced surprisingly strong numbers for the second quarter of 2023. Gross domestic product (GDP), adjusted for inflation, grew beyond […]
What Recession? US on a Barbie spending spree!
The numbers are in and things look surprisingly rosy for the U.S. economy: The Federal Reserve is still cautious, but big brands – including Coca-Cola, Hilton and Visa — are singing praises to shoppers seemingly undeterred by companies’ raising prices. What’s more, Taylor Swift, Beyoncé and Barbie are enticing people to part with their money, […]
Big Mac inflation; Mcdonalds meal nearly $18
An image of McDonald’s menu this week went viral because people couldn’t believe the prices depicted. Twitter user Sam Learner says he snapped the photo at a McDonald’s located at a Connecticut rest stop. In the photo, a Big Mac combo meal – with fries and a soft drink – is $17.59. Other combo […]
Older Americans are struggling to pay bills
More Americans are struggling to pay their household bills compared with a year ago, but the rise in hardship isn’t hitting all groups equally. Older workers and people over 65, who are largely retired, have experienced the sharpest rise in financial hardship among all age groups compared with a year earlier, according to an analysis […]
Only 25% of US Homes are affordable for typical buyer
Owning a home has long been seen as a pillar of the American dream. But a new report highlights just how far many Americans remain from achieving it. Middle-income households, or those with annual earnings of up to $75,000, can afford only 23% of the homes listed for sale in the U.S., according to recent […]
US inflation accelerated in April
A key index of U.S. prices ticked higher in April, and consumer spending rebounded, a sign that inflationary pressures in the economy remain high. The index, which the Federal Reserve closely monitors, showed that prices rose 0.4% from March to April, much higher than the 0.1% rise the previous month. Measured year over year, prices […]
US credit card debt to hit 1 Trillion this year
American credit card debt remains at record-breaking heights, according to fresh government data, as consumers turn to plastic amid stubbornly high prices on everyday items and housing. U.S. credit card debt was $986 billion in the first quarter of this year, according to the latest report on household debt from the Federal Reserve Bank of […]
US bank bosses call collapse ‘unimaginable’
The former bosses of two US banks that collapsed in March, sparking global fears over the state of the financial industry, say the failures were caused by “unprecedented” circumstances. The remarks come in testimony prepared for a hearing in Washington on Tuesday. Lawmakers are examining the episode amid debate over what should have been done […]
Americans are holding on to their older cars
With new and used cars still painfully expensive, Ryan Holdsworth says he plans to keep his 9-year-old Chevy Cruze for at least four more years. Limiting his car payments and his overall debt is a bigger priority for him than having a new vehicle. A 35-year-old grocery store worker from Grand Rapids, Michigan, Holdsworth would […]
US interest rates now highest in 16 years
The US central bank has raised interest rates to the highest level in 16 years as it battles to stabilise prices. The Federal Reserve increased its key interest rate by 0.25 percentage points – its tenth hike in 14 months. The Fed signalled that Wednesday’s rise may be its last one for now. The moves […]