The Federal Reserve says more Americans are struggling financially than they did a year ago.
The Fed released its latest Household Economics survey, or SHED report, yesterday. Over 11,000 Americans were surveyed. Overall, they found that higher prices were negatively impacting the financial well-being of respondents.
Notably, 35% of Americans say they are worse off in 2022 than they were the year before. That’s the highest number of Americans to make that claim since 2014.
This is highlighted by the first-ever decline in the number of citizens who are prepared to cover a $400 expense. In 2021 – even during pandemic uncertainty – a record high of 68% of Americans said they could cover an unexpected expense with cash resources.
But that number dropped 5 points to 63% in yesterday’s report.
Meanwhile, 1 in 10 Americans report they are now struggling to pay their bills.