US media: Federal Reserve survey shows more and more Americans are facing financial difficulties in households | Report | United States
According to Bloomberg News on May 23rd, a new Federal Reserve report shows that an increasing number of Americans are struggling with financial issues, highlighting the adverse effects of inflation on American households over the past year.
According to the Federal Reserve's annual report on household economics and decision-making, as of October last year, about 73% of adults were "financially at least passable," a decrease of 5 percentage points from last year and one of the lowest levels since 2016.
This survey examined the financial situation of over 11000 American adults and their families. The inflation rate surged to a 40 year high in mid-2022, squeezing the living space of American households, a situation that has not occurred since the 1980s. Since then, although inflation has slowed down, it is still far higher than the level before the COVID-19 epidemic.
The Federal Reserve also issued a statement in its report: "Overall, the report shows that high prices have had a negative impact on most households, and the overall financial situation has declined over the past year, but workers still benefit from a strong labor market."
Nearly a quarter of the respondents stated that although their expenses increased in 2022, their income did not increase. About two-thirds of people reported that due to rising prices, they stopped using a certain product or reduced usage, while 51% reported reducing savings. About 28% of people reported that they have not received any form of healthcare in the past year due to their inability to afford it.
Only 63% of adults reported using cash or other equivalent means to pay for unexpected expenses of $400, a decrease from 68% last year. Many people point out that they rely on credit cards or family members to handle such bills. Approximately 13% of people stated that they are unable to pay such bills in any way.
The proportion of Americans who express confidence in their retirement readiness has also decreased, with 31% of non retirees reporting that their savings plans are progressing smoothly, which is lower than 40% in 2021 and lower than in 2018, 2019, and 2020.