Know The Difference Minute

A new Lending Tree report says 60% of all US adults are living paycheck to paycheck.

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The problem with consumers.
Welcome to the Know the Difference Minute for Wednesday, March 1st.
You can say this for the American consumer; they’re not giving up. Friday’s Core Personal Consumption Index came in hot, up 1.8% for the month.
That’s a problem. Raising interest rates was supposed to dampen spending. Instead, it appears consumers have conceded higher prices are part of everyday living.
That’s not great news. A new Lending Tree report says 60% of all US adults are living paycheck to paycheck—and that includes 45% of high-income earners. Record credit card debt. Less than half pay off monthly balances.
The Fed has been threatening to pull the car over if the economy doesn’t behave. That means rates will be ‘higher for longer’. It also means if avoiding a recession is important, abandoning a 2% inflation target might be a reality.
I’m Dave Spano from Annex Wealth Management. That is your Know the Difference Minute.