Money Issues Links
Consumer Financial Protection Bureau Issues Report Showing Many Americans Are Surprised by Overdraft Fees
"Many consumers do not expect overdraft fees: Among consumers in households charged an overdraft fee in the past year, 43% were surprised by their most recent account overdraft, 35% thought it was possible, and only 22% expected it. Consumers who overdraft infrequently are more likely to be surprised by a fee: 15% of consumers from households charged 1 to 3 overdraft fees expected their most recent transaction to overdraft; among households charged more than 10 overdraft fees, 56% expected their most recent overdraft. Most households incurring overdraft fees had available credit on a credit card: Among households charged 1-3 overdraft fees in the past year, 68% had credit available on a credit card, while 62% of households charged 3-10 overdraft fees had credit available on a credit card. In households charged more than 10 fees in the past year, 51% still had credit available on a credit card." more »
November 1, 2023 Chair Jerome Powell’s Press Conference on Employment and Inflation
CHAIR POWELL."Inflation has moderated since the middle of last year, and readings over the summer were quite favorable. But a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal. The process of getting inflation sustainably down to 2 percent has a long way to go. Despite elevated inflation, longer-term inflation expectations appear to remain well anchored, as reflected in a broad range of surveys of households, businesses, and forecasters, as well as measures from financial markets. The Fed’s monetary policy actions are guided by our mandate to promote maximum employment and stable prices for the American people. My colleagues and I are acutely aware that high inflation imposes significant hardship as it erodes purchasing power, especially for those least able to meet the higher costs of essentials like food, housing, and transportation." more »
Board of Governors of the Federal Reserve System: Something’s Got to Give by Governor Christopher J. Waller
Christopher J. Waller: "The data in the past few months has been overwhelmingly positive for both of the FOMC's goals of maximum employment and stable prices. Economic activity and the labor market have been strong, with what looks like growth well above trend and unemployment near a 50-year low. Meanwhile, there has been continued, gradual progress in lowering inflation, and moderation in wage growth. This is great news, and while I tend to be an optimist, things are looking a little too good to be true, so it makes me think that something's gotta give. Either growth moderates, fostering conditions that support continued progress toward our 2 percent inflation objective, or growth doesn't, possibly undermining that progress. But which is going to give — the real side of the economy or the nominal side?" more »
U.S. Families' Experiences of the COVID-19 Pandemic: Evidence from the Survey of Consumer Finances
"This FEDS Note summarizes high-level findings from the COVID-19 questions, showcasing differences in families' experiences of the first years of the pandemic across income and education groups and connecting these differences to income and net worth measured in the SCF. In particular, lower-income families and families with lower levels of educational attainment were more likely to experience a reduction in work, which could reflect their lower incidence of telework and higher incidence of a severe COVID-19 infection. These differential employment experiences appear to map well to between-survey income growth across the income distribution, especially after accounting for unemployment benefits, which were temporarily expanded over this period." more »