Shout it from the rooftops: Americans Reported Strong Personal Finances Late Last Year, Fed Finds
Americans reported the highest level of financial well-being last fall than at any point in almost a decade, leaving them better-positioned to withstand an economic slowdown this year, according to a Federal Reserve survey released Monday.
The survey, conducted in October and November ahead of the Omicron wave of Covid-19, found that the strong economic recovery combined with government stimulus programs allowed households to enter 2022 in good shape. The U.S. this year faces economic headwinds with its highest inflation in four decades, rising interest rates, wobbly stock and financial markets and imbalances of supply and demand in goods and labor markets.
Overall, 78% of adults said they were either doing OK or living comfortably, up from 75% in 2020 and the highest share since the survey began in 2013. All racial and ethnic subgroups saw improvement in 2021, according to the report, but the increase was particularly pronounced among Hispanic respondents. About 71% of Hispanic adults said they were doing all right financially, up from 64% in 2020.
Stronger family finances have made it easier for people to afford an unexpected expense. About 68% of adults said they would be able to cover a hypothetical $400 expense using cash or putting the expense on a credit card, up from 50% in 2013, the first year the survey was conducted.
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The Fed survey adds to other indications that households are well-positioned to withstand any market turbulence, economists said. As of the end of last year, Americans owned about $4 trillion more liquid assets than they would have had the prepandemic trend continued, said Stephen Stanley, chief economist at Amherst Pierpont. That should underpin consumer spending this year and prop up economic growth, he said. “The outlook looks very good,” he said.
https://www.wsj.com/articles/americans-reported-strong-personal-finances-late-last-year-fed-finds-11653317014 (subscription)
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Smart campaigns should be able to weave this even with the inflation and Ukraine... and shooting..
= new reply since forum marked as read
