July 2022 / VIDEO
Consumers Are Financially Strong, But Inflation Looms
Government stimulus and a robust labor market have resulted in strong consumer balance sheets, but the wildcard is inflation.
- Pandemic-related stimulus combined with a robust labor market have resulted in consumer balance sheets that are stronger than before the pandemic.
- Consumers are releveraging, with aggregate credit card debt recently rising above pre-pandemic levels.
- However, if inflation stays elevated, consumers will need to lean more heavily on their savings to fund purchases, reducing average checking account balances.
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