Credit card charge-offs and liquidations have hit their highest rate since 2008 for credit card issuers such as Capital One and Discover, a concerning sign for the outlook of the US economy. The Federal Reserve is starting to sign alarm bells about this.
Recent reports from card issuers, including AMEX (American Express), also show an increase in delinquencies and charge-offs. A sign that US consumers are struggling to pay their bills and could be on the verge of reducing spending.
If consumer spending gets cut back, that’s something which could cause a recession. As spending accounts for almost 70% of US GDP.
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