Half of Americans Worse Off Financially Since 2020 Due to Inflation and Interest Rates, Despite Economic Strengths
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Half of Americans say their finances have gotten worse since 2020 due to high inflation, interest rates, and cost of living. Consumer confidence is the lowest since 2008.
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Inflation rose dramatically in 2021-2022 but has cooled to 3.4% as of December 2023. However, prices remain high for many goods.
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Interest rates have steadily climbed, with the Fed funds rate now at 5.375%, the highest in decades. This impacts loans and mortgages.
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Despite recession worries, the economy shows signs of strength - low unemployment, strong wage growth especially for lower-income workers. A recession still may happen.
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Americans' views on their finances depend heavily on the economy. If no recession happens in 2024, financial situations may start to improve for many.