Consumer debt climbed to a new record once again in April. The question is how much money can American consumers borrow before the bubble pops?
Americans borrowed money at the fastest pace in five months in April, according to the latest Federal Reserve Consumer Credit Report. Total consumer credit increased by $17.5 billion. That’s an annual growth rate of 5.2%
Americans currently owe nearly $4.07 trillion.
Consumer debt continues to climb and break records every month. But the pace of borrowing slowed in March, a possible red flag for the US economy.
Total consumer debt rose $10.3 billion in March, hitting a record-setting total of $4.05 trillion, according to the latest report by the Federal Reserve.
Through the first quarter of 2019, American indebtedness increased at a 4.25% annual rate. But the March increase came in at just only 3.1% and ranked as the smallest consumer debt increase in nine months.
The US Treasury plans to borrow another $425 billion in the final quarter of 2018, bringing total borrowing for the year to $1.34 trillion, according to a Treasury Department press release.
The 2018 borrowing level is expected to more than double 2017’s number.
The economy is booming – or so we’re told. But the federal government is borrowing money like we’re in the midst of a deep recession.
Long-term US debt sales have risen to a level not seen since the height of the Great Recession. Meanwhile, the Treasury Department announced the creation of a new benchmark short-term 2-month Treasury bill.
All of this is in an effort to cover a rapidly upward-spiraling national debt even as some of the big players in the bond market sit on the sidelines.