American Spending Spree Defies Economy's Headwinds, But Raises Concerns Over Debt and Inequality
• Americans are spending at high levels despite inflation and interest rates, propping up the economy • Households are draining savings and racking up record credit card debt to fund spending spree • GDP grew faster than expected in Q4 2022, powered partly by resilient consumer spending • Consumers spent at a faster rate than income growth, signaling unsustainability • Burden of high inflation disproportionately borne by low-income Americans