Posted 1/25/2024, 12:54:21 AM
Rising Debt Burdens Signal Trouble Ahead for Consumers
- Consumer spending has outpaced income growth since 2019, leading to a widening gap that is unsustainable long-term
- Interest costs are surging on mortgages, auto loans, and especially credit card debt, further squeezing consumers
- Limited room remains for fiscal or monetary stimulus to boost incomes and ease debt burdens
- If oil prices spike, it could reignite inflation and prevent expected Fed rate cuts
- The author is cautious on stocks currently and is building a large cash position ahead of an expected market pullback