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Although the labor market is strong, the economy is growing, and consumer spending is increasing, persistently high inflation coupled with spiking interest rates have weighed down consumers — especially those who were not among the 14m homeowners who refinanced during the pandemic, locking in ultra-low interest rates and extracting $430b in the process.
“As interest rates feed through from the federal funds rate to interest rates on mortgages and credit cards, that affects everyday consumers,” Sofia Baig, an economist at decision intelligence company Morning Consult, told CNN. “So with elevated interest rates, paying that debt becomes more expensive, and with consumers continuing to take on more debt, this combination will put more pressure on some households who have those tighter budgets.”
https://www.cnn.com/2023/08/08/economy/us-household-credit-card-debt/index.html
