31 August 2023
Despite slight relief in inflation, 61% of adults are still living paycheck to paycheck as of July, an increase from last year. Federal Reserve Chair Jerome Powell expressed concern over persistent high inflation and hinted at more interest rate hikes. Central bank officials have already raised rates 11 times, impacting consumers’ spending habits. Lower-income workers, hit hardest by rising prices, are struggling to make ends meet. Around 70% of Americans are stressed about finances due to inflation, rising interest rates, and lack of savings. Only 45% have an emergency fund, with 26% having less than $5,000 saved.