Many families said they cut their savings to make ends meet, postponing purchases or swapping products for cheaper ones when shopping.
In an annual survey showing the devastating effects of inflation on Americans’ confidence in the economy, the Federal Reserve said the percentage of respondents who said their “financial situation is at least good” in 2022 fell by five percentage points to 73%, the biggest drop since the survey was launched a decade ago.
The percentage of those who said they were worse off rose 15 points to 35%, the highest level since the US central bank began asking this question in 2014.
The Bank launched the “Household Economy and Decision Making Survey” in 2013.
Although the campaign for the 2024 presidential election is already in its early stages, the survey also indicates that Americans’ concern about their finances is a reflection of their view of the national economy.
Although the unemployment rate in the United States has been below 4% since January 2022, only 18% of respondents rated the national economy as “good” or “excellent”, compared to 50% in 2019.
The Federal Reserve conducted the survey in October and the results included responses from a representative sample of 11,775 people.
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