US Personal Interest Payments Top $500B as Rate Rises Cripple Households
BeInCrypto
18 Sep 2023 4:39 AM
US households grapple with soaring interest payments, hitting a record $506 billion in July, amidst rising rates....
- US personal interest payments reached a record $506 billion in July, according to the St. Louis Federal Reserve.
- Americans paid a total of $3.3 trillion in personal interest during the first seven months of 2023, up 80% since 2021.
- Interest rates in the US are currently at 5.5%, but borrowing costs for various loans have spiked.
- Inflation has increased to 3.7%, putting additional pressure on households and individuals.
- The Federal Reserve is expected to hike interest rates again this year and keep them at peak levels for longer than previously anticipated.
- US personal savings are dwindling, and the Fed predicts they will be depleted by the end of the year.
- US banks are facing challenges, with significant deposit outflows and record levels of the Fed's banking bailout fund.
- Crypto markets are trading sideways with little momentum.
The article highlights the negative impact of high interest rates on households, with personal interest payments reaching record levels. It also mentions the challenges faced by US banks and the depletion of personal savings. The sentiment overall is negative.