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☆ Americans have spent their savings. Economists worry about what comes next
▼ + stars: | 2024-05-07 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

But now that extra spending money is gone, economists are concerned about what comes next. That means many Americans have more debt than savings and suggests “that American households fully spent their pandemic-era savings as of March 2024,” they wrote in a recent report. Consumer spending plays a crucial role in driving economic growth in the United States, and it has shown remarkable strength over the past two years. “A continuing strong labor market could help consumers maintain spending patterns similar to those observed recently, even without pandemic-era savings,” they wrote. What comes next: Disney, Airbnb, Uber, Anheuser-Busch, Tapestry and Dillards all report later this week — investors will look for any comments about how consumer spending, or lack thereof, is altering revenue forecasts for 2024.

Persons: Hamza Abdelrahman, Luiz Edgard Oliveira, ”, Austan Goolsbee, ’ ”, Fitch, Sarah Wyeth, Chris Kempczinski, Abdelrahman, Airbnb, Warren Buffett, Berkshire Hathaway, Greg Abel, Buffett, “, Abel, isn’t, Boeing “, Scott Stocker, Read Organizations: CNN Business, Bell, New York CNN, San Francisco Federal Reserve, Chicago Federal, Society for, ”, Shoppers, Tyson Foods, “, Disney, Anheuser, Busch, Berkshire, International Monetary Fund, Industries, Nvidia, Microsoft, FAA, Boeing, Federal Aviation Administration, CNN Locations: New York, United States, Omaha , Nebraska, Omaha, scamming

☆ Citigroup CEO Jane Fraser says low-income consumers have turned far more cautious with spending
▼ + stars: | 2024-05-06 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Citigroup CEO Jane Fraser said Monday that consumer behavior has diverged as inflation for goods and services makes life harder for many Americans. Fraser, who leads one of the largest U.S. credit card issuers, said she is seeing a "K-shaped consumer." "We're seeing a much more cautious low-income consumer," Fraser said. That means Americans must live with higher rates for credit card debt, auto loans and mortgages for longer. "It's hard to get a soft landing," the CEO added, using a term for when higher rates reduce inflation without triggering an economic recession.

Persons: Jane Fraser, Fraser, CNBC's Sara Eisen Organizations: Citigroup, Federal Reserve

☆ The Federal Reserve holds interest rates steady, offers no relief from high borrowing costs — what that means for your money
▼ + stars: | 2024-05-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

"If Americans want lower interest rates, they're going to have to do it themselves," he said. "Going forward, mortgage rates will likely continue to fluctuate and it's impossible to say for certain where they'll end up," noted Jacob Channel, senior economist at LendingTree. Auto loansEven though auto loans are fixed, payments are getting bigger because car prices have been rising along with the interest rates on new loans, resulting in less affordable monthly payments. Student loansFederal student loan rates are also fixed, so most borrowers aren't immediately affected. Interest rates for the upcoming school year will be based on an auction of 10-Year Treasury notes later this month.

Persons: Brett House, aren't, Matt Schulz, Schulz, Jacob Channel, there's, Ivan Drury, Edmunds, Drury Organizations: Columbia Business School, Treasury, Fed Locations: Edmunds

☆ High Fed Rates Are Not Crushing Growth. Wealthier People Help Explain Why.
▼ + stars: | 2024-04-30 | by ( Jeanna Smialek | ) www.nytimes.com time to read: +1 min

More than two years after the Federal Reserve started lifting interest rates to restrain growth and weigh on inflation, businesses continue to hire, consumers continue to spend and policymakers are questioning why their increases haven’t had a more aggressive bite. The answer probably lies in part in a simple reality: High interest rates are not really pinching Americans who own assets like houses and stocks as much as many economists might have expected. Some people are feeling the squeeze of Fed policy. Credit card rates have skyrocketed, and rising delinquencies on auto loans suggest that people with lower incomes are struggling under their weight. Their house values are mostly holding up in spite of higher rates, stock indexes are hovering near record highs, and they can make meaningful interest on their savings for the first time in decades.

Persons: haven’t Organizations: Federal Reserve

IntroductionWhen you complete the FAFSA, your school may offer you any one of three types of federal loans: subsidized loans, unsubsidized loans, and Direct PLUS Loans. If your college costs aren't covered completely by the aid offered through the FAFSA, you may have to take out private loans as well. You will have to pay those back, and these should be your last option as private loans often come with worse terms and protections than federal loans. Student Loans: These DO have to be repaid with interestYou can get various types of aid from the FAFSA, and you'll know what you qualify for once your school gives you your complete financial aid package. Ryan Wangman, CEPF Loans Reporter Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans.

Persons: Ryan Wangman, Read Organizations: Loans, Chevron, Finance, Northwestern University, Boston Globe Locations: Iraq, Afghanistan

☆ Americans are falling behind on their payments
▼ + stars: | 2024-04-25 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

Americans are already struggling to keep up with their credit card payments. Strong consumer spending has buoyed the US economy through the Fed’s aggressive hiking cycle that has brought interest rates to a 23-year high. Economists say that Fed officials look closely at Americans’ ability to make their payments. Nunes, himself a former Republican congressman from California, pointed to how Trump Media has been among the most expensive stocks to borrow. “This is particularly troubling given that ‘naked’ short selling often entails sophisticated market participants profiting at the expense of retail investors,” the Trump Media CEO wrote.

Persons: New York CNN —, Austan Goolsbee, ’ ”, ”, Ramon Laguarta, Matt Egan, Devin Nunes, ” Nunes, Nunes, Read, Hanna Ziady, Colm Kelleher, “ Organizations: CNN Business, Bell, New York CNN, Chicago Federal, Society for, New York Fed, ISI, PepsiCo, Commerce Department, Atlanta Fed, Social, Trump Media, Trump Media & Technology Group, Truth Social, Financial Services, Republican, Traders, UBS, Credit Suisse Locations: New York, California, Switzerland, Swiss

Basics of how home equity loans workWith a home equity loan, you use your home as collateral for a loan. Home equity loan terms vary, but you usually have anywhere from five to 30 years to repay the loan. Differences between home equity loans and HELOCsHome equity lines of credit (HELOCs) are similar to home equity loans in that they let you borrow from your home's equity. What's the difference between a home equity loan and a home equity line of credit (HELOC)? She covers mortgage rates, refinance rates, mortgage lender reviews, and homebuying for Personal Finance Insider.

Persons: you've, whittle, Molly Grace, Molly, Read, Aly J, Yale Aly J, Bob Organizations: Homeowners, Chevron, Business, Finance, Insider, Rocket Companies, Twitter, Yale, Forbes, Money Magazine, The Dallas Morning News, Bob Schieffer College of Communication Locations: Chevron, mgrace@businessinsider.com

☆ Bank of America's top global strategist warns of growing bubble risk in the stock market as the economy heads for a no-landing scenario — and shares 3 charts showing the market could be headed for tro
▼ + stars: | 2024-04-20 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

Read previewMichael Hartnett, Bank of America's top global strategist, thinks a no-landing scenario is the most-likely outcome for the US economy in the months ahead. That means the labor market would remain strong, but inflation would also stay above the Federal Reserve's long-term goal of 2%. While that's fine for now, Hartnett warns it's a path that eventually leads to trouble for the economy and stocks. "We say rising no landing risks = rising hard landing risks," Hartnett said in an April 11 note. The fund's price dipped below its 200-day moving average in 2020 and 2022, when the economy slowed and stocks underperformed.

Persons: —, Michael Hartnett, Hartnett, it's, Michael Landsberg Organizations: Service, Bank of America's, Business, Consumer, Bank of America, Landsberg Bennett, Wealth Management, Fed Locations: REITs, Ukraine

☆ Wells Fargo is flat after an earnings beat — here's why and our outlook on shares
▼ + stars: | 2024-04-12 | by ( Zev Fima | ) www.cnbc.com time to read: +9 min

Wells Fargo Why we own it : We bought Wells Fargo as a turnaround story under CEO Charlie Scharf. In addition, the bank's net interest margin came up short, and therefore net interest income. However, bank interest income estimates depend on interest rates, a factor Wells can't control. Net interest income fell 17% year over year as deposits declined due to customers reallocating cash into higher-yielding securities. Non-interest income increased 9% thanks to higher asset-based fees driven by an increase in market valuations.

Persons: Wells, Charlie Scharf, He's, Scharf, Charles Scharf, Wells Fargo, it's, Jim Cramer's, Jim Cramer, Jim, Justin Sullivan Organizations: Federal Deposit Insurance Corporation, Silicon Valley Bank, Bank of America, Citigroup, Management, Consumer, Auto, Corporate, Wealth, CNBC Locations: Silicon, Wells Fargo, U.S, That's, Wells, San Bruno , California

☆ Here are some big money blind spots you need to avoid, advisors say
▼ + stars: | 2024-04-04 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Here are some of the biggest financial blind spots, according to several certified financial planners on CNBC's Digital Financial Advisor Council. 1. Credit scoresConsumers often don't understand the importance of their credit score, said Kamila Elliott, CFP, co-founder and CEO of Collective Wealth Partners based in Atlanta. The average person with a credit score between 760 and 850 would get a 6.5% interest rate, according to national FICO data as of April 1. The latter's monthly payment would cost $324 more relative to the person with a better credit score — amounting to an extra $116,000 over the life of the loan, according to FICO's loan calculator. "Ten out of 10 people couldn't explain how the tax withholding system works," said Ted Jenkin, CFP, CEO and founder of oXYGen Financial based in Atlanta.

Persons: Kamila Elliott, Wills, Barry Glassman, I'm, Glassman, Elliott, That's, Ted Jenkin, Uncle Sam, Jenkin Organizations: Getty, Digital Financial, CFP, Wealth Partners, Consumer Financial, Bureau, Wealth Services, Westend61, Collective Wealth Partners, Business, Employers, Workers Locations: Atlanta

☆ The firm that backed Trump’s $175 million bond reveals how the deal came together
▼ + stars: | 2024-04-02 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

It was put together very quickly.”Based in California, Knight Specialty Insurance is known for providing subprime auto loans to car buyers with weaker credit scores. At first, Trump planned to post a mix of investment-grade bonds and cash as collateral (80% bonds and 20% cash), Hankey said. Although Knight Specialty received the bonds and approved them, he said they were not posted in the end. “Ultimately, he put up all cash,” Hankey said, adding that he does not know where the $175 million in cash that Trump posted came from. In 2022, Axos Bank, a California lender, loaned Trump $100 million to refinance the mortgage on Trump Tower.

Persons: CNN — Don Hankey, Donald Trump’s, Trump, ” Hankey, Hankey, Forbes, Specialty, Eric Trump, It’s Organizations: CNN, Specialty Insurance, Knight Specialty Insurance, Trump Organization, Trump, Knight, Axos Bank Locations: New York, California, Axos

☆ 3 smart money moves to make in your 20s to be more successful
▼ + stars: | 2024-03-27 | by ( Annie Probert | ) www.cnbc.com time to read: +3 min

If you're questioning how to put your money to use in your 20s, here are three smart money moves to set yourself up for success later in life, according to two certified financial planners. The most common forms of debt for twentysomethings include credit cards, auto loans, student loans and personal loans. High interest rates have made paying off debt even harder, and in 2023 people under 29 carried an average of nearly $3,000 in credit card debt. To tackle credit card debt, Rossman recommends either signing up for a 0% balance transfer card or consolidating your credit card debt if you have several balances on different cards. Student loans are another common burden for many young people, with nearly 35% of adults ages 18 to 29 carrying student loan debt, according to the Education Data Initiative.

Persons: you've, Z, Andrew Fincher, Joe Conroy, Ted Rossman, Rossman, Fincher Organizations: Financial, CNBC, Education Data Initiative Locations: what's

The biggest monthly bills Americans pay each month are mortgage, rent, and auto loans. AdvertisementThe biggest monthly bills Americans pay each month are mortgage, rent, and auto loans, according to the report. The other most common bills include utilities, auto insurance, cable and internet, mobile phones, health insurance, life insurance, and home security. Of those monthly bills, utilities, mobile phones, and health insurance have jumped the most in the last five years. AdvertisementThe most common monthly bills are just part of the picture for manyThese bills are just one piece of the picture showing the current cost of living.

Persons: Lynnette, Cox Organizations: Census Bureau, Resilience, Business Locations: Doxo

☆ After traveling in a van for 2 weeks, I saw how the lifestyle could be cheaper than my Denver life
▼ + stars: | 2024-03-23 | by ( Monica Humphries | ) www.businessinsider.com time to read: +7 min

I wanted to explore the US, but I also wanted to see if van life was something I could do full-time. I quickly realized that these small costs — eating out, gas station snacks, souvenirs — are where van life can get expensive. AdvertisementSo finding a lifestyle like van life, which includes adventure and potential savings, sounds too good to be true. Monica Humphries/Business InsiderI experienced ways that living in a van could be cheaper than my lifestyle todayThere are hidden costs that come with van life. I'm not saying van life is necessarily cheaper than city living, but I am convinced it can be if I work at it.

Persons: —, ProMaster, I've, Apartments.com, Axios, It's, Brittany Newson, Monica Humphries, it'd, Zach Nelson, Joe's, Joshua, Ram, van, I'd, I'm Organizations: Service, Denver, Mercedes, Benz, Costco, Walmart Locations: Denver , Colorado, Denver, Southwest America, Plenty, San Fransico, Joshua Tree

☆ The Fed holds interest rates steady. What that means for your money
▼ + stars: | 2024-03-20 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Annual percentage rates will start to come down when the Fed cuts rates, but even then they will only ease off extremely high levels. That's up from 4.4% when the Fed started raising rates in March 2022 and 3.27% at the end of 2021, according to Bankrate. Doug Duncan, chief economist at Fannie Mae, expects mortgage rates will end the year at 6.4%, but that won't provide much of a boost for would-be homebuyers. If rates come down and it ramps up demand and there's no supply, the only thing that happens is that home prices go up." Once the Fed cuts rates, "that gives people a little more breathing room," Drury said.

Persons: Brett House, Ted Rossman, Doug Duncan, Fannie Mae, Duncan, Ivan Drury, Edmunds, Drury Organizations: Columbia Business School, Treasury, Fed Locations: Edmunds

☆ The Federal Reserve may not cut interest rates just yet, here's what that means for your money
▼ + stars: | 2024-03-18 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

"Interest rates took the elevator going up; they are going to take the stairs coming down," he said. Annual percentage rates will start to come down when the Fed cuts rates but even then, they will only ease off extremely high levels. "The reality of it is, a lot of borrowers are paying double-digit interest rates on those right now," McBride said. Federal student loansFederal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves. But undergraduate students who take out new direct federal student loans are now paying 5.50% — up from 4.99% in the 2022-23 academic year and 3.73% in 2021-22.

Persons: Chris Wattie, Greg McBride, McBride, Sam Khater, Freddie Mac's, that's, Ivan Drury, Edmunds, Drury Organizations: Reuters, Treasury, Fed Locations: Edmunds

Measured year over year, producer prices rose by 1.6% in February, the most since last September. Core wholesale prices rose 0.3%, down from a 0.5% jump the previous month. Photos You Should See View All 60 ImagesThe producer price index can provide an early read on where consumer inflation is headed. Compared with a year earlier, prices rose 3.2%, up from a 3.1% increase rise the previous month. Still, February's acceleration in producer prices suggested that inflation could stay elevated into the spring.

Persons: Biden, Joe Biden's, doesn't, Jerome Powell Organizations: WASHINGTON, —, Federal Reserve, The Labor Department, Fed, Capital Economics, CPI, Wall Locations: United States

☆ Here's when the Fed is likely to start cutting interest rates, according to investment strategists
▼ + stars: | 2024-03-14 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

Kent Nishimura | Getty Images News | Getty ImagesWest Palm Beach, Fla. — The U.S. Federal Reserve is likely to start cutting interest rates by the end of second quarter despite recent "hotter than expected" inflation data, according to Kristina Hooper, chief global market strategist at Invesco. The question has become, at what point — and how quickly — does the central bank start to cut rates in order to avoid plunging the economy into a downturn? Fed chair Jerome Powell said last week that the Fed may not be far off from throttling back. The Fed last raised interest rates in summer 2023; in prior interest-rate-hiking cycles, the Fed began cutting rates about 8½ months later, Hooper said. Jenny Johnson, president and CEO of Franklin Templeton, also expects the central bank to begin cutting rates this year, though in the second half of 2024 at Fed policy meetings in July or September.

Persons: Jerome Powell, Kent Nishimura, Kristina Hooper, it's, Hooper, Jenny Johnson, Franklin Templeton, Moira McLachlan Organizations: Banking, Housing, Urban Affairs Committee, Getty, U.S . Federal, Women, Fed Locations: Palm Beach, Fla, U.S, West Palm Beach , Florida

☆ 'Financially speaking, you are wealthy,' self-made millionaire tells couple—they still may not meet their retirement goal
▼ + stars: | 2024-03-13 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

Brad, 55, and Angie, 56, joke that you might mistake their home for a millionaire's if they lived in a more expensive city. In reality, the couple are empty-nesters living in Wisconsin, where they earn a joint income of around $245,000 a year. The amount they earn should go further in Wisconsin than areas with higher costs of living. In fact, they owe about $430,000 between their mortgage, student loans and other debts. But that probably won't be possible, unless their spending habits and debt balances change dramatically, Sethi said.

Persons: Brad, Angie, Ramit Sethi, Rich, Sethi Organizations: Auto Locations: Wisconsin

☆ Regional banks were all ‘guilty until proven innocent’ after Silicon Valley Bank, Citizens CEO says
▼ + stars: | 2024-03-10 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +9 min

Other regional bank stocks got slammed: By the end of the day, most saw their stock down by double-digit percentages. Kori Suzuki/ReutersIt’s been exactly one year since that fateful day marked the start of a string of subsequent bank failures. Because of that, “there will be bank failures,” Federal Reserve Chair Jerome Powell warned senators in his semi-annual testimony last week. Bruce Van Saun: People like to call last year’s bank failures regional bank failures. Office real estate is just one component of commercial real estate, albeit the most worrisome to banks and economists.

Persons: Bruce Van Saun, NYCB, Kori Suzuki, Reuters It’s, it’s, Jerome Powell, Van Saun, Richard Drew, didn’t, Michael Nagle, Joseph Otting, Otting, CARLOS BARRIA, we’re, we’ve Organizations: New, New York CNN, Citizens Financial Group, New York Community Bank, NYCB, Reuters, CNN, Signature Bank, Silicon Valley Bank, Citizens Financial, Providence, Financial Group, Bloomberg, SVB, we’re, SoFi, Citizens, OneWest Bank, CIT Group, REUTERS Locations: New York, Silicon, San Francisco , California, Providence , Rhode Island, Covid

☆ The credit card crisis is worse for millennials and Gen Zers
▼ + stars: | 2024-03-09 | by ( Cork Gaines | ) www.businessinsider.com time to read: +5 min

The credit card debt for young Americans has grown at a faster pace than other generations. AdvertisementAmericans are in the midst of a credit card crisis, and nobody is being hit harder than millennials and Gen Zers. The study examined the anonymized credit scores of 41 million customers and anonymized credit card balances for about 80 million people in March 2022 and February 2024. Credit scores are falling for young AmericansThe soaring credit card debt has coincided with falling credit scores for these younger groups of consumers. If that happens, credit card debt will likely keep growing, and credit scores for young Americans could keep dropping.

Persons: Gen Zers, —, Zers, Z, millennials —, Rich Franks, Franks, Gen Z, that's, OnePoll, millennials Organizations: Service, Federal Reserve Bank, Intuit Credit Karma, Intuit Credit, Forbes, MMI, Money Management Locations: millennials

☆ Wells Fargo has cleared 6 regulatory hurdles since Charlie Scharf took over as CEO in 2019. Here’s how shares reacted to each
▼ + stars: | 2024-03-09 | by ( Morgan Chittum | ) www.cnbc.com time to read: +7 min

Since taking over as CEO of Wells Fargo in 2019, Charlie Scharf has been cleaning up the bank. Wells Fargo stock gained 59% for all of 2021 compared with the KWB's 36% rise. Jan. 5, 2021: During the same year, Wells Fargo announced that an OCC consent order from 2015 had been terminated. Wells Fargo shares plunged nearly 44% in 2020, which were the early days of the Covid pandemic. Wells Fargo bank signs in New Brighton, Minnesota.

Persons: Charlie Scharf, Wells, Morgan Stanley, they've, Scott Siefers, Piper Sandler, we're, Scharf, Wells Fargo, Jeff Marks, Marks, Jan, Jim Cramer's, Jim Cramer, Jim, Michael Siluk Organizations: Management, CNBC, Federal Reserve, Currency, JPMorgan Chase, Bank of America, KBW, Club, OCC, Wells, Financial Protection Bureau, Silicon Valley Bank, Wells Fargo, UCG, Getty Locations: Wells Fargo, Wells, Silicon, New Brighton , Minnesota

☆ Car Deals Are Easier to Find but Lenders Are Tightening Their Terms
▼ + stars: | 2024-03-08 | by ( Ann Carrns | ) www.nytimes.com time to read: 1 min

New cars are more available this spring, and manufacturers have even begun offering deals to entice buyers. But at the same time, lenders have been tightening the terms of car loans as they deal with a rising number of delinquencies. That has made it harder for some people to get affordable loans. The impact was seen at banks, credit unions and dealerships. “We are seeing credit access tighten in all channels,” said Sean Tucker, a senior editor at Kelley Blue Book, Cox’s car research and sales website.

Persons: ”, Sean Tucker, Kelley Organizations: Cox Automotive

Hillary Seiler works with NFL players to help them build solid financial habits and create wealth. AdvertisementPrioritize good credit so you can get the best interest rates and avoid obstacles to buying a home. Hillary Seiler, founder of Financial Footwork, helps clients improve their finances, including working with many NFL players to establish good financial habits and preserve their wealth. Seiler says the strategies she shares with NFL clients can be used by anyone to build wealth and financial stability. Prioritize a good credit scoreCredit has always been important, but now in a high interest rate environment, good credit is crucial.

Persons: Hillary Seiler, Seiler, Read Organizations: NFL, Business

☆ Americans’ credit scores are falling. That hasn’t happened in a decade
▼ + stars: | 2024-03-07 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —Even as unemployment remains historically low and recession fears fade, consumer credit scores are starting to buckle. Although FICO scores remain near record highs — and well above pre-pandemic levels — this marks the first drop in a decade. FICO said the one-point drop in credit scores in late 2023 was driven by an increase in Americans missing payments and also by rising debt levels. However, he said this one-point drop in credit scores is not necessarily a red flag. “The overall outlook for consumer credit quality, and consumer spending growth,” Faucher said, “is still very solid.”

Persons: FICO, FICO’s, Arkali, ”, “, ” Arkali, Banks, ‘, Gus Faucher, Faucher, it’s “, ” Faucher Organizations: New, New York CNN, CNN, New York Fed, Federal Deposit Insurance Corporation, ’ Consumers, NY Fed, PNC Locations: New York

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