Consumer exhaustion has been mounting for months, and now the strain is becoming unmistakable. This is particularly troubling given that consumer spending accounts for roughly 69% of the U.S. GDP. Recent data and industry warnings paint a picture of growing financial stress across American households.
JPMorgan Chase, often seen as a bellwether for the banking sector, has reported that the portion of its credit card lending business deemed unrecoverable has climbed to a 13-year high, as noted by the Financial Times.
Federal Reserve data corroborates this trend, showing that the credit card loan charge-off rate for the top hundred banks by asset size reached 4.58% in the last quarter of 2024, a level not seen since the third quarter of 2011.
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