{"id":2341946,"date":"2024-09-16T16:14:01","date_gmt":"2024-09-16T20:14:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-era-inflation-continues-to-decimate-american-bank-accounts\/"},"modified":"2024-09-16T16:19:25","modified_gmt":"2024-09-16T20:19:25","slug":"biden-era-inflation-continues-to-decimate-american-bank-accounts","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-era-inflation-continues-to-decimate-american-bank-accounts\/","title":{"rendered":"Biden-Era Inflation Continues to Decimate American Bank Accounts"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-era-inflation-continues-to-decimate-american-bank-accounts%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2341946&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-campaign-reacts-to-bump-stock-supreme-court-decision-the-court-has-spoken\/\" title=\"Trump campaign responds to Supreme Court&#039;s bump stock ruling: &quot;The court has spoken.\">provided text discusses<\/a> the financial struggles facing American consumers, highlighting a significant rise in\u200b credit card \u200band auto \u200dloan delinquencies. As reported by The Wall Street Journal, nearly 10% of credit card balances\u2062 and 8% of auto loan balances have become overdue, marking the highest level of credit card delinquencies seen in over a decade. This trend has been linked to rising living costs and a deteriorating job market under the Biden administration,\u200d with \u200dinflation rising over 20% since January 2021.<\/p>\n<p>Additionally, interest rates for \u2064credit cards have surged to an average of 21.51%, and \u200ccar loan rates reached 8.2%, making payments less affordable. Job growth has slowed, with unemployment\u2062 increasing \u2064to 4.2%, which compounds the financial strain\u2063 on households.\u2063 As a result, consumer savings have dwindled sharply, dropping from over 25% during the COVID-19 pandemic to just 2.9% by July. Major lenders are experiencing\u2064 charge-offs, with expectations that delinquency rates\u200c will remain high into 2024. these economic challenges\u2062 are causing significant \u2062concern for American consumers as they grapple with higher costs and \u200dfinancial insecurity.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section> <script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><\/p>\n<p>Americans are having an increasingly hard time making their credit card and car payments as Biden-era price increases and a worsening labor market have decimated their pocketbooks, according to The Wall Street Journal.<\/p>\n<p>Nearly 10 percent of credit-card balances and 8 percent of auto loan balances became past due in the last year &mdash; the highest rate of credit card delinquencies the U.S. has seen in over a decade, according to the<a href=\"https:\/\/www.westernjournal.com\/federal-reserve-breached-countless-americans-banking-secrets-held-ransom-hacking-group\/\" target=\"_blank\" rel=\"noopener\"> Federal Reserve<\/a> Bank of New York. Executives at major lenders like Citigroup and Ally Financial have noted the trend, with Ally&rsquo;s stock falling 18 percent last Tuesday after its Chief Financial Officer Russ Hutchinson reported the quantity of charge-offs &mdash; balances that the company wrote off because borrowers were unlikely to pay &mdash; was higher than expected in July and August, the WSJ reported.<\/p>\n<p>&ldquo;[Borrowers at Ally] have been struggling with the cost of living and now are struggling with an employment picture that&rsquo;s worse,&rdquo; Hutchinson told the WSJ.<\/p>\n<p>The increase in un-repaid loans is expected to continue, with Bread Financial &mdash; a credit-card issuer that serves more lower-income borrowers than larger financial institutions &mdash; expecting the rate to remain elevated through the end of 2024, while fellow credit-card issuer Synchrony Financial said it is <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/could-auto-loans-be-the-source-of-the-next-crash\/\" title=\"Could Auto Loans Be the Source of the Next Crash?\">experiencing higher delinquency rates<\/a> than before the COVID-19 pandemic, according to the WSJ.<\/p>\n<p>Prices have risen more than 20 percent since President Joe Biden took office in January 2021, peaking at 9 percent in June 2022. <a href=\"https:\/\/www.westernjournal.com\/mark-levin-uses-6th-grad-econ-test-show-harris-inflation-plan-wont-work\/\" target=\"_blank\" rel=\"noopener\">Inflation<\/a> sat at just 1.4 percent at the end of former President Donald Trump&rsquo;s term.<\/p>\n<p>  <script> \t\t\t\tif( ! getCookie( 'ff_subbed' ) ) if( typeof FFADS.replace_ict !='undefined' ) if( FFADS.replace_ict ) eval( FFADS.replace_ict ); \t\t\t<\/script> <\/p>\n<p>Alongside elevated prices, interest rates for credit cards have also increased, climbing to 21.51 percent as of May, up from roughly 15 percent in 2019, according to the Federal Reserve Bank of St. Louis (FRED). The Federal Reserve has held its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/steve-forbes-reveals-the-key-tool-officials-are-not-wielding-against-inflation\/\" title=\"Steve Forbes Reveals The Key Tool Officials Are Not Wielding Against Inflation\">target federal funds rate<\/a> at a 23-year high range of 5.25 percent to 5.50 percent for eight straight Federal Open Market Committee (FOMC) meetings in order to combat inflation.<\/p>\n<p>Elevated rates hike interest payments, and, consequently, have helped drive the surge in overdue balances. Delinquencies reached their highest level in the first quarter of 2024 since the Federal Reserve Bank of Philadelphia began tracking the metric in 2012, as total revolving balances rose to $628.6 billion.<\/p>\n<p>High rates have also made car payments less affordable, with the rate on a 60-month loan for a new car hitting 8.2 percent in May, up from 5.3 percent in 2019, the WSJ reported.<\/p>\n<p>In addition to inflation and high borrowing costs, the U.S. &ldquo;employment picture&rdquo; has also worsened, with job growth coming in below economist expectations in both July and August, and <a href=\"https:\/\/www.westernjournal.com\/new-jobs-numbers-come-lower-expected-unemployment-rate-rises\/\" target=\"_blank\" rel=\"noopener\">unemployment<\/a> currently sitting at 4.2 percent, well above the 3.4 percent rate seen in April 2023, according to FRED.<\/p>\n<p>Faced with the combination of high interest rates, price increases and joblessness, American consumers have hemorrhaged savings, with the personal savings rate &mdash; the percentage of disposable income that Americans have saved &mdash; falling from over 25 percent during the COVID-19 pandemic to just 2.9 percent percent in July.<\/p>\n<div class=\"disclaimer\">\n<p><em>All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. 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For any questions about our guidelines or partnering with us, please contact&nbsp;licensing@dailycallernewsfoundation.org.<\/em><\/p>\n<\/p><\/div>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\">  <\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> <label>* Name<\/label> <br \/> <input type=\"text\" name=\"name\" required> <\/div>\n<div class=\"sc--field\"> <label>* <\/label> <br \/> <input type=\"text\" name=\"\" required> <\/div>\n<p> <label>* Message<\/label> <br \/> <textarea name=\"message\" required><\/textarea>  <\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> <input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\">  <\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> <script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! ( opts[inputs[i]]=document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display='block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display='none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src=firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id']=firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting=jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display='block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script>  <\/div>\n<p style=\"border: 1px solid #f5f5f5; padding: 16px;\">Advertise with The Western Journal and reach millions of highly engaged readers, while supporting our work. <a href=\"https:\/\/www.westernjournal.com\/advertise-us\/?wj_source=article\">Advertise Today<\/a>.<\/p>\n<p><script>console.log(\"ad slot (BA1)\")<\/script> <\/p>\n<div class=\"ff-fancy-header-container\">  <\/div>\n<style> \t\t\t \t\t\t.insticator-unit.type-commenting{margin: 0 10px 25px 10px}@media screen and (max-width:1060px){#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{margin: 0 auto 25px auto !important;}}#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{height: 280px !important; width: 336px !important} \t\t<\/style>\n<div class=\"insticator-unit type-commenting\">\n<div class=\"insticator-ads\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-1\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-2\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-1\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-2\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<div class=\"insticator-ads additional\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-3\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-4\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-3\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-4\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Americans are finding it increasingly difficult to keep up with their credit card and auto loan payments due to rising prices during the Biden administration and a declining job market, as reported by The Wall Street Journal. In the past year, almost 10% of credit card balances and 8% of auto loan balances have fallen behind, marking the highest rate of credit card delinquencies in over ten years, according to data from the Federal Reserve Bank of New York. Executives from major lenders like Citigroup and Ally Financial have observed this trend; for instance, Ally&#8217;s stock dropped 18% last Tuesday after CFO Russ Hutchinson revealed that charge-offs\u2014amounts written off due to borrowers&#8217; inability to pay\u2014were higher than anticipated in July and August. Hutchinson noted that borrowers at Ally are struggling with living costs amid a deteriorating employment situation.<\/p>\n<p>The rise in unpaid loans is expected to persist, with Bread Financial\u2014a credit card issuer catering primarily to lower-income customers\u2014projecting elevated delinquency rates through late 2024. Similarly, Synchrony Financial has reported higher delinquency rates compared to pre-pandemic levels. Since President Joe Biden took office in January 2021, prices have surged over 20%, peaking at a rate of 9% in June 2022; by contrast, inflation was only at 1.4% when former President Donald Trump left office.<\/p>\n<p>In addition to rising prices, interest rates on credit cards have also climbed significantly; as of May they reached an average of 21.51%, up from around 15% in 2019 according to the Federal Reserve Bank of St. Louis (FRED). To combat inflation, the Federal Reserve has maintained its target federal funds rate within a range not seen for over two decades (5.25%-5.50%) across eight consecutive meetings.<\/p>\n<p>These high interest rates contribute directly to increased payment burdens on consumers and have led overdue balances on revolving accounts reaching their highest level since tracking began in early 2012\u2014with total revolving debt hitting $628.6 billion during Q1 of 2024.<\/p>\n<p>Moreover, car payments are becoming less affordable as well; interest on new car loans for five years rose from about 5.3% in late-2019 to approximately 8.2% by May this year according to WSJ reports.<\/p>\n<p>Compounding these financial pressures is a deteriorating job market: job growth fell short of economists&#8217; expectations for both July and August while unemployment currently stands at around 4.2%, significantly above April&#8217;s figure of just three-point-four percent (3.4%).<\/p>\n<p>As Americans grapple with high borrowing costs alongside price hikes and increasing unemployment figures\u2014they&#8217;ve seen their savings dwindle dramatically\u2014the personal savings rate plummeted from over twenty-five percent during the pandemic down below three percent (2 .9%) by July<\/p>\n","protected":false},"author":1,"featured_media":2341947,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/09\/Untitled-design-39.jpg","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[3620,9168,5708],"class_list":["post-2341946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-biden","tag-economy","tag-inflation"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/09\/Untitled-design-39.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2341946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2341946"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2341946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2341947"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2341946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2341946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2341946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}