Money

What the “recession” is doing to our credit card habits

Published

2 years ago

August 24, 2023

ticker NEWS

Despite a series of interest rate hikes aimed at curbing inflation, consumers have displayed remarkable resilience.

However, recent indications suggest a shift in their spending habits.

Jack Kleinhenz, the Chief Economist of the National Retail Federation (NRF), points out that consumers are still purchasing more than they were last year. Nevertheless, there is a noticeable slowdown in spending growth as the economy stabilizes.

Kleinhenz elaborated on this observation in the August edition of NRF’s Monthly Economic Review, stating, “There are ongoing economic challenges and questions, and the pace of consumer spending growth is becoming incrementally slower.”

Over the past year, credit card debt reached a record high, while the personal savings rate declined. According to a report from the Federal Reserve Bank of New York, credit card balances for Americans soared to an all-time high of $1 trillion this year.

However, revolving debt, primarily composed of credit card balances, contracted in June, as reported by the Fed’s G.19 consumer credit report earlier this month.

Bank of America’s recent consumer checkpoint noted that after a robust start to the year, credit and debit card spending began to slow in the spring.

Slight increase

In July, total card spending registered only a 0.1% year-over-year increase after three consecutive months of year-over-year declines. This slight improvement was partly attributed to Fourth of July sales, Amazon Prime Day, and “Barbenheimer.”

As interest rates continue to climb, households are feeling the financial strain, leading consumers to reduce their reliance on credit cards for purchases, according to Kleinhenz. Currently, the average credit card interest rate stands at over 20%, reaching an all-time high.

NRF’s President and CEO, Matt Shay, mentioned on “Squawk Box” that spending habits are evolving. Consumers are now seeking value and focusing more on essentials, rather than discretionary purchases. He remarked, “Things have changed.”

While consumers are still in a favorable financial position and continue to spend, Shay noted that their spending patterns have shifted away from those observed 18, 12, or 24 months ago.

“A consumer spending slowdown is inevitable,” asserted Matt Schulz, Chief Credit Analyst at LendingTree. He emphasized that consumers face several significant challenges, including the impending resumption of student loan payments this fall, which will serve as a substantial test.

Schulz pointed out the uncertainty surrounding the future of card spending. It could either surge if people rely on credit cards to make ends meet or contract further if borrowers cut back on discretionary expenses such as travel and dining out.

As economists suggest a ‘soft landing’ for the economy, consumers are advised to remain vigilant and adapt to changing financial circumstances.

Money

How to position investments for 2026: Expert advice on market cycles

As 2026 begins, strategic investment positioning and understanding market cycles are crucial for navigating today’s evolving financial landscape.

Published

15 hours ago

January 14, 2026

Harvey Vargas

As 2026 begins, strategic investment positioning and understanding market cycles are crucial for navigating today’s evolving financial landscape.

As 2026 begins, investors are navigating an evolving market landscape. Experts stress that positioning your investments strategically is far more important than trying to predict market movements.

Key factors include focusing on quality companies, maintaining strong cash flow, and diversifying intelligently.

Dale Gillham from Wealth Within Group joins us to break down what defines a major market cycle and why understanding it can shape your investment approach. From identifying inflation-resilient businesses to selectively tapping into growth themes like AI, this discussion covers essential strategies for the year ahead.

We also explore the role of risk management, the importance of an exit strategy, and how emotional decision-making can impact your portfolio. For anyone looking to strengthen their investing education and skills, this episode offers actionable insights to gain an edge in 2026.

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#Investing2026 #MarketCycles #WealthManagement #AIInvesting #FinancialStrategy #RiskManagement #InvestmentTips #TickerNews

Money

Markets in 2026: Fed rates, gold surge, oil tensions & AUD strength

As 2026 begins, markets face economic shifts; gold and silver soar, while energy and currencies impact global investors.

Published

2 days ago

January 13, 2026

Harvey Vargas

As 2026 begins, markets face economic shifts; gold and silver soar, while energy and currencies impact global investors.

As 2026 begins, global markets face a mix of economic shifts and geopolitical tensions shaping currencies, commodities, and interest rates. The Federal Reserve’s next moves are under the microscope, and Zoran Kresovic from Blueberry Markets says understanding these changes is key for investors navigating the year ahead.

Gold and silver are hitting all-time highs, driven by market volatility and economic uncertainty. Kresovic notes that both metals are likely to continue climbing, remaining essential safe-haven assets amid inflation concerns.

Energy markets are also volatile, with crude oil prices rising amid geopolitical tensions. Meanwhile, the Australian dollar is showing strength against the U.S. dollar. Kresovic highlights that these trends in energy and currency markets can ripple across the global economy, making them critical for investors to watch.

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#MarketUpdate #FedRates2026 #GoldPrices #SilverSurge #CrudeOil #AUDUSD #InvestingInsights #TickerNews

Money

Stocks hit record high as Powell faces investigation and Trump proposes credit cap

S&P 500 hits all-time high amid Fed scrutiny; Trump’s credit card cap proposal raises investor concerns over bank profits.

Published

2 days ago

January 13, 2026

Harvey Vargas

S&P 500 hits all-time high amid Fed scrutiny; Trump’s credit card cap proposal raises investor concerns over bank profits.

The S&P 500 reached a new all-time high, with the Nasdaq climbing 0.5% while the Dow Jones held steady. This comes amid news of a criminal investigation into Federal Reserve Chair Jerome Powell. Despite the scrutiny, analysts believe short-term interest rates and inflation are unlikely to be impacted.

Meanwhile, Trump’s proposal to cap credit card rates at 10% for a year sparked concern among investors about potential effects on lending and bank profitability. Major bank stocks reacted sharply, with Citigroup down 3% and Capital One falling 6%.

In commodities, gold futures rose 2%, reflecting fears that political pressure on the Fed could challenge its ability to manage inflation effectively.

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#StockMarket #SP500 #Nasdaq #FederalReserve #JeromePowell #TrumpNews #BankStocks #GoldFutures