American consumers see debt delinquency risk rising, higher long-term inflation: NY Fed

Published On Oct 15, 2024, 3:40 PM

According to a recent report from the New York Federal Reserve, American consumers are increasingly worried about their ability to make debt payments, with the likelihood of delinquency climbing to 14.2%. This marks the highest level since April 2020. Concerns about long-term inflation are also growing, with expectations rising for inflation rates of 2.7% over three years and 2.9% over five years. Despite these worries, consumers do not expect significant job losses in the coming year, although the probability of leaving a job voluntarily has increased. The Fed's recent interest rate decisions also play a role in these evolving economic perceptions, as lower rates are being anticipated in light of recent data.