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When the going gets tough

The stengh of the US economy has been based for decades on the strength of the American consumer. One of the reasons the fed has been hiking rates is the fact that #unemployment is low and the us consumer keeps spending, which keeps the demand strong, and keeps #inflation from reaching the goal of 2%. But it seems that some cracks are starting to appear on the health chart of the consumer. As you can see in the chart below, 60% of households report that is more difficult to obtain credit, the secret behind consumer strength, than a year ago. In particular, rejection rates for credit applications have jumped to 21.8%, rejection for auto loans at 14.2%, and rejection for credit card limit increases at 30.7%. Despite that fact, new credit card applications have jumped 24.8%. The consumer is running out of options, maybe by design, courtesy of the #federalreserve


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