Fed to Weigh How Much Fuel Consumers Have Left After Rate Hikes

 

• Larger debt payments, dwindling cash piles to test consumers
• Household trends to affect odds for Fed hikes, recession

The surprising resilience of American consumers is about to be tested over the coming months, as rising delinquencies, growing debt payments and dwindling cash piles put pressure on household balance sheets.

Whether consumers pull back or power through is the biggest question facing Federal Reserve officials this week at their two-day policy meeting, where they’re set to hold interest rates steady in a range of 5.25% to 5.5%, a 22-year high. They’ll also debate whether another rate hike is needed at a future gathering, weighing the data on blockbuster growth that threatens to accelerate inflation, against expectations for a slowdown.

https://www.bloomberg.com/news/articles/2023-10-29/fed-to-weigh-how-much-fuel-consumers-have-left-after-rate-hikes