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As the dust settles on the latest economic data, one thing is abundantly clear: inflation isn’t showing any signs of backing down, and the consequences are hitting people hard. Despite the Fed’s hopes for a return to normalcy, the reality on the ground tells a different story. According to Mish Shedlock, the latest figures from the BEA paint a bleak picture. While personal income saw a modest increase, real income actually took a hit in February. Meanwhile, personal spending surged, driving up prices even further. Inflation, though largely expected, remains stubbornly high, far beyond the Fed’s comfort zone.

The Massachusetts senator blames corporate greed for price increases that were caused by inflationary federal spending she supported.Do you hate it when the big bag of chips you bought turns out to contain mostly air inside? Well, Sen. Elizabeth Warren (D–Mass.) does, and she's crusading to end this injustice. In a series of tweets and videos over the past few days, Warren has come out swinging against the "shrinkflation" of Doritos, Oreos, and other store-bought products whose sizes have shrunk even as their prices remain the same. "These big corporations are shrinking how much they give us, but they're charging...

* Collectively, Americans owe $1.13 trillion on their credit cards, according to a new report from the Federal Reserve Bank of New York. * Higher prices have largely caused consumers to spend down their savings and lean on credit cards to make ends meet. * Now, young adults, who are also burdened by high levels of student loan debt, are increasingly falling behind on the payments, the New York Fed found. Americans now owe a collective $1.13 trillion on their credit cards, according to a new report on household debt from the Federal Reserve Bank of New York. This is...

Americans are piling on more credit card debt amidst persistent inflation and high interest rates, driving total debt to a new record of over $1.08 trillion, according to the New York Federal Reserve Bank’s Quarterly Report on Household Debt and Credit. Meanwhile, Fed Chair Powell downplays the likelihood of a real estate-led banking crisis but anticipates closures or mergers among smaller banks. The tightening monetary policy reflects the most restrictive measures since the 1970s and 1980s, with stricter loan standards observed across the board, especially in Commercial Real Estate loans.

In the shadows of economic prosperity, a quiet crisis brews as tens of millions of Americans succumb to “Doom Spending.” This phenomenon, where one spends beyond their means to cope with stress, is not just a financial dilemma but a reflection of broader societal shifts. Especially pronounced among the younger generation, this trend tells a story of forsaken dreams. Young Americans, instead of investing in homes or starting families, are opting for instant gratification like cruises, signaling a departure from traditional aspirations.

In a stark reality check, Bloomberg reports that the economic optimism touted by some is falling flat for many American households. The sentiment of being worse off isn’t just a feeling; it’s a harsh truth. According to the Daily Rampart from @ftschuyler, Credit Card Delinquency levels have doubled since the COVID lows, painting a concerning picture of financial strain. As inflation runs rampant, the impact is palpable even in everyday expenses. A snapshot of what $70 gets you at Walmart is a testament to the escalating costs that consumers are grappling with, highlighting the stark reality of today’s economic landscape.

When it comes to the economy, Americans are feeling invigorated by holiday spirits and hopes for next year’s election. The University of Michigan’s barometer of consumer sentiment soared to a preliminary December reading of 69.4, the best reading since August. Economists had been predicting only a mild pick-up to 61.9 after sentiment had sunk to a six-month low of 61.3 in November.

"You can't have a recession if everyone has a job and everyone is spending money," I told the audience in Las Vegas. We hosted our annual Stansberry Conference last month. And I had the honor of sharing my most up-to-date thoughts on the markets and the economy. Everyone is still on edge, waiting for a recession to take hold in the U.S. Many of our analysts at Stansberry Research are exploring the possibility, too. It's good to be prepared. But you shouldn't lose sleep over this fear. The reason why is as simple as what I said in Vegas... Consumer...

Consumer confidence, as measured by the IBD/TIPP Index, dropped to 36.3 in October, the lowest since 2011 The Six-Month Economic Outlook component reached an all-time low of 28.7, signaling a bleak outlook Low confidence stems from factors like high inflation (16.7% since Biden took office), stagnant wages, expensive gas, student loans, and concerns about government spending The Federal Reserve's actions to combat inflation and stock market volatility contribute to the gloomy outlook Worries persist about the Russia-Ukraine conflict and the possibility of an economic recession Only 25% of Americans approve of President Biden's handling of the economyThe IBD/TIPP Economic Optimism...

What is the Beige Book? The Beige Book is a Federal Reserve System publication about current economic conditions across the 12 Federal Reserve Districts. It charac- terizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from each District’s sources. Reports are published eight times per year. What is the purpose of the Beige Book? The Beige Book is intended to characterize the change in economic conditions since the last report. Outreach for the Beige Book is one of many ways the Federal Reserve System engages with businesses and other organizations about economic developments...

WASHINGTON (AP) — U.S. consumer confidence shot to the highest level in two years this month as inflationary pressures eased and the American economy continued to show resilience in the face of dramatically higher interest rates. The Conference Board, a business research group, said its consumer confidence index rose to 117 in July from a revised 110.1 in June. The gauge beat the 110.5 that economists had expected and was the highest since July 2021. The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months. Both improved in July. The future expectations...

Consumer confidence fell in May as Americans became more pessimistic about the labor market, on top of elevated anxiety over inflation. The Conference Board reported Tuesday that its consumer confidence index fell to 102.3 in May from 103.7 in April. It’s the fourth time in five months that overall U.S. consumer confidence has declined.

Total consumer debt rose to an all-time high in the first quarter of 2023, according to the Federal Reserve Bank of New York, with increases to mortgage balances, auto loans and student loans putting debt at a record level. Consumer debt rose to over $17 trillion for the first time ever, according to the data released by the New York Fed. The total represented a $148 billion increase from the previous quarter and a $1.2 trillion surge from last year. The rise in debt was spurred on by a $121 billion climb in mortgage balances in the U.S., bringing total...

"...While the banks might be fine, some cash-strapped and credit-abusing consumers clearly are not. The idea that JPM is building reserves to cushion themselves against bad loans amid rapidly increasing charge-offs tells you all you need to know. Similar story at Bank of America (BAC), who also increased reserves. Across the nation’s four biggest banks, consumer loan charge-offs increased 73% in Q1, as they wrote off $3.4 billion in bad debt during the first three months of the year. "

A data breach by an employee at the Consumer Financial Protection Bureau is sending shock waves through the financial services industry, raising far more questions than answers about how an employee was able to obtain information on more than 250,000 consumers and dozens of companies.The agency, whose mission is to go after bad behavior at financial institutions, said the employee is "no longer employed by the CFPB." Lawmakers were told of the data breach on March 21, according to the Wall Street Journal. The CFPB said it had identified "a confidential-information and privacy incident" in which a now-former CFPB employee...

The consumer price index (CPI) rose by 0.4 percent in February for an annual increase of 6 percent, right in line with what economists had been expecting, according to data released Tuesday by the Labor Department. The 6 percent annual inflation rate was the lowest yearly price increase since September 2021. Without food and energy prices, which are more volatile, the CPI rose 0.5 percent in February and 5.5 percent over the past 12 months.

WASHINGTON (AP) — The Federal Reserve’s preferred inflation gauge eased further in December, and consumer spending fell — the latest evidence that the Fed’s series of interest rate hikes are slowing the economy. Friday’s report from the Commerce Department showed that prices rose 5% last month from a year earlier, down from the 5.5% year-over-year increase in November. It was the third straight drop. Consumer spending fell 0.2% from November to December and was revised lower to show a drop of 0.1% from October to November. Last year’s holiday sales were sluggish for many retailers, and the overall spending figures...

According to the Conference Board, consumer confidence, which includes a key indicator on where consumers see the economy going and what they plan to do as a result, is looking up.Reuters reports:The Conference Board said its consumer confidence index increased to 108.3 this month, the highest reading since April, from 101.4 in November. Economists polled by Reuters had forecast the index at 101.0. While the survey places more emphasis on the labor market, the rebound in confidence matched a similar rise in the University of Michigan's sentiment index.Consumers' 12-month inflation expectations fell to 6.7%, the lowest since September 2021, from...

Summary > Consumer spending increases 0.8% in October > Personal income rises 0.7%; saving rate falls to 2.3% > Core PCE price index gains 0.2%; up 5.0% year-on-year > Weekly jobless claims fall 16,000 to 225,000 U.S. consumer spending increased solidly in October, while inflation moderated, giving the economy a powerful boost at the start of the fourth quarter as it faces rising headwinds from the Federal Reserve's aggressive monetary policy tightening. The labor market, the economy's other pillar of support, continues to show resilience. The number of Americans filing new claims for unemployment benefits declined last week, almost unwinding...

Treasury Secretary Janet Yellen blamed consumers' excessive spending habits as a primary cause for the near 40-year-high in inflation on Wednesday. The Biden official appeared on "The Late Show with Stephen Colbert" where she was asked about the price increases that have plagued the U.S. for more than a year.