It’s no secret that stubborn inflation and aggressive Federal Reserve interest rate hikes have weighed on Americans’ finances for over a year now, but new data from the central bank shows just how many consumers are feeling the pain.
According to the Fed’s 2022 Economic Well-Being of U.S. Households survey released Monday, some 37% of Americans lack enough money to cover a $400 emergency expense, up from 32% in 2021. That means nearly one in four consumers would have to use credit, turn to family, sell assets, or get a loan in order to cover any major unexpected cost. And when asked about non-emergency expenses, 18% of Americans said the largest expense they could cover using only their savings was under $100.
