Debt Fears Loom Large for U.S. Consumers

While inflation may be cooling, the latest report from the Federal Reserve Bank of New York reveals that American consumers are far from feeling at ease. A recent survey shows inflation holding steady at 3% over the next year, but rising anxiety about managing household debt is casting a long shadow.

As the cost of essentials like gas, rent, and medical care continues to climb, consumers are increasingly worried about their ability to keep up. The survey highlights a concerning trend: for the third consecutive month, more Americans expect to miss a debt payment in the near future, with the figure hitting 13.6% in August—the highest since the early days of the pandemic. Even as inflation stabilizes, the pressure on household budgets remains relentless, reminding us that economic recovery is far from a one-dimensional affair.