t 4am most days of the week Uber driver Belinda Rogers is heading out of the backblocks of Detroit to work off her $US30,000 credit card debt.
“The growth in revolving credit starting late in 2021 was in part a return to more normal borrowing patterns following a plunge in debt early in the pandemic,” Vanden Houten said. Vanden Houten expects more Americans will cut back on spending. “We think a slower pace of consumer spending in response to aggressive [Federal Reserve] rate hikes and tighter lending standards will begin to curb revolving credit growth,” she said.
“Nonprofit contacts noted that some of their clients have begun charging basic food and utility expenses to credit cards,” it reported. Fed chairman Jerome Powell did not leave anyone in doubt this week about which way interest rates are expected to go, saying the central bank is prepared to react to recent signs of economic strength by“Nothing about the data suggests we have tightened too much,” he told Congress before saying that Fed members’ predictions of how high rates, last plotted out in December, could still be revised up.