While Baby Boomers and even Traditionalists (born 1928-1945) are ramping up spending, Gen X, Gen Z and Millennials are cutting back as they grapple with high housing costs and looming student debt payments.
If not for the aggressive spending by Boomers, Tinsley said, overall consumer spending would have been even more negative.
Bank of America spending data shows a noticeable bump in spending by households that received the cost-of-living boost.
The student debt freeze, in effect since March 2020 when the Covid pandemic erupted, is expected to conclude by the end of August.
For millions of Gen Z and Millennials, the return of student debt payments will mean less money for spending on restaurants and vacations.
Persons:
Gen X, Gen, ” David Tinsley, Tinsley, ” Tinsley, ”, Biden, “
Organizations:
New York CNN, Younger, Bank of America, Boomers, Bank of America Institute, CNN, Baby Boomers, Social, New York Federal Reserve
Locations:
Tinsley