Reported 4 months ago
The Federal Reserve Bank of Chicago President Austan Goolsbee has warned about the rising delinquency rates as a leading indicator of potential economic downturn. Recent data from the Federal Reserve shows a significant increase in delinquency rates in the first quarter of 2024, with 3.2% of outstanding debt in delinquency. This rise in financial distress among consumers is evident across all debt categories, with credit card and auto loan transition rates into serious delinquency increasing. The Federal Reserve attributes these rising delinquency rates to factors such as increased spending without substantial savings and lending to borrowers with lower credit scores. Policymakers and financial institutions are urged to closely monitor these indicators to prevent further economic deterioration.
Source: YAHOO