'Credit Card Balances Jumped In The Second Quarter And Are Above $1 Trillion For The First Time' - CNBC
Portfolio Pulse from Happy Mohamed
The New York Federal Reserve reported that total credit card indebtedness increased by $45 billion in Q2 2023, pushing aggregate balances over $1 trillion for the first time. The delinquency rate also rose to 7.2%, the highest since Q1 2012. The increase in balances reflects inflationary pressures and higher levels of consumption. Demand for card issuance has eased, coinciding with banks tightening credit standards. Other debt categories showed modest changes.
August 08, 2023 | 3:10 pm
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The rise in credit card debt and delinquency rates may indicate economic stress, potentially impacting the broader market tracked by SPY. However, the easing demand for card issuance and tightening credit standards could mitigate risks.
Rising credit card debt and delinquency rates often signal economic stress, which could negatively impact the broader market that SPY tracks. However, the easing demand for card issuance and tightening credit standards by banks could help mitigate these risks.
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RELEVANCE 50