The latest report from the Federal Reserve reveals a slowdown in U.S. consumer-credit growth for October. Consumer credit expanded at a 1.2% annual rate, a significant drop from the 3% rate observed in September. October saw a total consumer credit increase of $5.2 billion, down from the prior month’s gain of $12.2 billion.
Contrary to economists’ expectations of a $9.1 billion gain in consumer credit for October, the actual figures indicate a more moderate growth. Simultaneously, gas prices in the U.S. have reached their lowest levels of the year, providing relief to consumers. However, this positive development is tempered by the realization that savings have fallen to historically low levels.
The concern arises from credit card interest rates exceeding 20%, coupled with a staggering national debt surpassing $1 trillion.
The United States has now accumulated over $1 trillion in credit card debt, a situation made even more concerning by credit card interest rates exceeding 20%. pic.twitter.com/ztuUYmfdjO
— Shark (@_Shark_Trading) September 6, 2023
Adding to the economic complexities, the M2 money supply has experienced a substantial contraction, reaching its deepest level since 1960. Furthermore, the current yield curve inversion has matched the depth observed in 1928, prompting reflection on historical financial patterns and potential implications for the economy.
WARNING: M2 money supply has collapsed
And is now contracting at the deepest level since 1960 pic.twitter.com/pAls5QRD9L
— Bravos Research (@bravosresearch) December 17, 2023
The current yield curve inversion reached the same depth as 1928. Let that sink in. pic.twitter.com/rvWZLZAfrc
— Bravos Research (@bravosresearch) December 17, 2023