Consistently high inflation has eroded the U.S. households’ sense of financial security, showed a newly published Federal Reserve (Fed) report on economic well-being of households in 2022.
Many respondents noted “they had reduced their savings to make ends meet, felt less secure about retirement, and had delayed purchases or swapped into cheaper products as they shopped,” Reuters said when reporting about the Fed document on Monday.
“Overall financial well-being declined markedly over the prior year,” the report said.
Seventy-three percent of adults were doing at least okay financially in 2022, down 5 percentage points from 2021, and the share of adults who said they were worse off financially than a year earlier rose to 35 percent, the highest level since the question was first asked in 2014, the Fed report showed.
