May’s $5.3B Revolving Credit Plunge: A Warning Sign for U.S. Consumer-Led Growth
The Federal Reserve reported a $5.3 billion drop in U.S. revolving credit in May, the largest since 2024, as consumers—especially lower- and middle-income households—retreat from borrowing. Near-record credit card APRs and persistent inflation are underpinning a defensive de-leveraging, while Bank of America warns of a deepening K-shaped economy. For markets, this signals potential slowing in consumer spending, margin pressure for card issuers, and a delicate path for Fed policy.
Source: europesun.com · kenyastar.com