Americans average $10,000 dollars in credit card debt: Missouri Senator Josh Hawley calls for cap on interest rates

Credit-Card-Debt-by-State

Important Takeaways:

  • Average American household now has $10,170 credit card debt – here are the states where balances are highest
  • American households now have an average of $10,170 credit card debt, as record numbers say they are worried about being cut off from access to loans.
  • Data from the New York Federal Reserve shows nationwide credit card debt swelled by $43 billion in the second quarter of the year – the second largest increase on record.
  • Meanwhile a separate survey by the Fed revealed 60 percent of respondents found it more difficult to access credit – the highest level since the data series began in June 2013.
  • But some states are faring much worse than others as households in Hawaii have the highest debt currently, according to fresh analysis by WalletHub. Families in the Aloha state have $10,637 in credit card loans on average.
  • It was followed by Alaska, California and New Jersey where average debts were $10,142, $9,796 and $9,468 respectively.
  • By contrast, Wisconsin has the lowest debts of any state, with the average household owing $6,208 on their cards.
  • The interest charged by credit card companies is loosely guided by the Federal Reserve’s benchmark rate which last month soared to a 22-year high.
  • It has fueled calls to curb interest on such loans. Yesterday Missouri Republican Sen. Josh Hawley urged the Government to install an 18 percent cap on credit card rates as he hit out at providers.

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Inflation has 61% of Americans living paycheck to paycheck and Feds considering raising interest rates again

Fed-Rate-Outlook

Important Takeaways:

  • 61% of Americans are living paycheck to paycheck — inflation is still squeezing budgets
  • The number of Americans who say they are stretched thin has remained stubbornly high, according to several reports.
  • Federal Reserve Chair Jerome Powell recently called for continued vigilance in the fight against inflation, warning there may even be more interest rate increases to come.
  • The battle against inflation is not over.
  • As of July, 61% of adults still said they are living paycheck to paycheck, according to a new LendingClub report, slightly more than last year’s 59%.
  • June and July both saw easing in the pace of price increases, with core inflation up 0.2% for each month, according to the U.S. Bureau of Labor Statistics.
  • But in recent remarks, Federal Reserve Chair Jerome Powell said inflation “remains too high” despite those positive indicators, and warned that more interest rate hikes are still possible.
  • Central bank officials have already raised rates 11 times, pushing the Fed’s key interest rate to a target range of 5.25% to 5.5%, the highest level in more than 22 years.
  • Now, 78% of consumers earning less than $50,000 a year and 65% of those earning between $50,000 and $100,000 were living paycheck to paycheck in July, both up from a year ago

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Feds consider raising Interest Rates again as $30 Billion exits US banking system in one week

Money Counter

Revelations 13:16-18 “Also it causes all, both small and great, both rich and poor, both free and slave, to be marked on the right hand or the forehead, so that no one can buy or sell unless he has the mark, that is, the name of the beast or the number of its name. This calls for wisdom: let the one who has understanding calculate the number of the beast, for it is the number of a man, and his number is 666.”

Important Takeaways:

  • $30,000,000,000 Exits US Banking System in One Week As Deposit Flight Grows
  • According to stats compiled by the Federal Reserve Economic Data (FRED) system, depositors yanked $30 billion out of American bank accounts from May 10th through May 17th.
  • That represents an increase of more than $4 billion over the previous week.
  • The US banking system now has a total of $17.15 trillion in deposits, compared to $18.03 trillion one year ago.
  • The deposit flight follows the failures of three large regional banks – Signature Bank, Silicon Valley Bank and First Republic.
  • According to a Federal Reserve report, more than 700 American banks are considered to be facing “significant safety and soundness risk” due to unrealized losses that exceed 50% of their capital.
  • In the report, the Fed calls out its own interest rate hikes as the core reason those banks are now in a precarious position.

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Feds boost Interest Rates again adding an additional $1.7 billion in credit card bills

Inflation Graph

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • What the Fed’s rate hike means for your wallet: Quarter-point increase will add $1.7 billion to US credit card bills over the next year
  • The Fed on Wednesday boosted its benchmark rate a quarter percentage point, to a range of 4.75 percent to 5 percent, its highest level in 16 years and up from near zero a year ago.
  • The latest rate increase will cost American credit card users a collective $1.7 billion in added interest charges over the next 12 months, according to a study from WalletHub.
  • That’s on top of the $30.4 billion more in credit card interest charges the study chalks up to the Fed’s prior rate hikes since last March, when the central bank’s policy rate was near zero
  • Government data shows that the amount of consumer loans, including credit cards and other revolving plans with commercial banks, soared to $965.6 billion on March 8. That’s up from $830 billion at the same time last year.

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Interest Rates likely to increase Powell says

Jerome Powell

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • Powell Signals Increased Rate Hikes if Economy Stays Strong
  • “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell testified to the Senate Banking Committee. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.”
  • In December, they forecast that it would reach about 5.1% later this year. Powell’s latest remarks suggested that the Fed could raise it even higher. Futures pricing indicates that investors now expect it to rise a half-point further, to 5.6%
  • Elizabeth Warren, Democrat of Massachusetts, noted that Fed officials have projected that the unemployment rate will reach 4.6% by the end of this year, from 3.4% now. Historically, when the jobless rate has risen by at least 1 percentage point, a recession has followed, she noted.

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Energy, Fuel, Interest Rates, and Inflation on Grocery items: No Relief until mid 2023…maybe

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • Heat or Eat? Natural Gas Prices Set to Skyrocket This Winter on Biden’s Watch
  • In a bombshell Nov. 9 report that the mainstream media has virtually ignored, data from Biden’s U.S. Energy Information Administration (EIA) indicated that it predicts the price of natural gas prices will skyrocket during the upcoming winter season. Prices are expected to hit at least 10-12-year highs, and that’s based on normal winter conditions.
  • Some long-term forecasts strongly suggest that the upcoming winter season will be especially cold for many areas of the country, as well as higher snowfall amounts for many areas, exacerbating the looming home energy crisis.
  • The first sign of relief, according to the agency, might not even come until much later in 2023, when the Freeport LNG terminal in Texas is brought back online.

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Feds marching Interests Rates higher in a risk rewards market as Dow drops 100 points

Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • Dow drops 100 points after the Fed dashes hopes for a pivot to softer tightening stance
  • Markets will likely continue to seesaw until it is clear inflation has cooled off and that the Fed has stopped marching rates higher, but traders split over where interest rates are headed. Any data that shows the U.S. economy isn’t slowing as the central bank tightens policy will likely weigh on stocks.
  • “In our view, the risk-reward for markets over the next three to six months is unfavorable, and today’s Fed statement supports that view”

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Third straight month Central Bank raises interest rates by 75 points

Revelations 18:23 ’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.’

Important Takeaways:

  • Federal Reserve raises interest rates by 75 basis points for third straight month
  • The Federal Reserve on Wednesday raised its benchmark interest rate by 75 basis points for the third straight month as it struggles to bring scorching-hot inflation under control, a move that threatens to slow U.S. economic growth and exacerbate financial pain for millions of households and businesses.
  • The three-quarter percentage point hikes in June, July and September — the most aggressive series of increases since 1994 — underscore just how serious Fed officials are about tackling the inflation crisis after a string of alarming economic reports.

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Federal Reserve ready to raise Interest Rates again

Rev 6:6 NAS “And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • Federal Reserve Prepares More Big Rate Hikes Amid Risk That High Inflation Could ‘Become Entrenched’
  • With surging inflation showing no signs of abating, Fed policymakers plan to raise interest rates by either 50 or 75 basis points at the upcoming meeting in July.
  • While tighter monetary policy “could slow the pace of economic growth for a time,” it is “critical” to achieving long-term inflation goals, central bank officials agreed, pledging to take more aggressive action even if it means hurting economic growth.

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Federal Reserve raises interest by .75 percent, and more could be coming in days to come

Rev 6:6 NAS “And I heard something like a voice in the center of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine.”

Important Takeaways:

  • BREAKING NEWS: Federal Reserve raises interest rates by three-quarters of a percentage point in the biggest hike since 1994 in a bid to slow rapid inflation
  • Federal Reserve raised the interest rate to .75 per cent in an attempt to rein in the record high levels of inflation
  • Officials agreed to increase at their two-day meeting that wrapped Wednesday
  • It is the biggest hike since 1994
  • The move will increase its benchmark short-term rate, which affects many consumer and business loans, to between 1.5% and 1.75%
  • Will likely result in higher interest rates for car and home loans
  • ‘We’re strongly committed to bringing inflation back down. And we’re moving expeditiously to do so,’ Chairman Jerome Powell said
  • More interest rate hikes could follow in the days to come
  • Voters list inflation and economy as their top concerns

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