Let’s Talk… Holiday Shopping 2022 Style!!
As consumer spending makes up roughly two-thirds of the US GDP, all eyes are on what the holiday spend will be. Between Thanksgiving Day and Cyber Monday, a record 197 million shoppers hit the stores. All meanwhile as the Fed is in the midst of trying to cool inflation by raising rates. So what does this all mean?
- US credit card balances are on the rise, so people are using credit to finance immediate gratification. Interest rates on these cards are also higher because they are tied to what the Fed is doing.
- Savings rates are down which shows that people are cutting back on saving to buy presents for the holidays.
- This is the opposite of what we should be doing if we want to lower inflation. As I’ve shared with close family regarding inflation and the Fed, what we need is for everyone to curb their spending… period!!
Lastly, the job market is good right now, but storm clouds are likely forming on the horizon. You don’t want to be that person who has a credit card balance from Christmas 2022, no savings, and unexpectedly gets laid off. It is a recipe for disaster that I don’t want anyone to go through!
The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
