US Consumer Debt Just Returning to Normal Levels, Bernstein Says
- Biden adviser says Americans ‘in good shape’ on debt servicing
- Rising after-tax income in 2023 will support spending, he says
Shoppers carry bags in Walnut Creek, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Strains on US consumer spending such as rising delinquency rates on credit cards largely indicate that Americans’ debt is returning to pre-pandemic levels, the head of President Joe Biden’s council of economic advisers said.
Jared Bernstein, a key advocate for Biden’s economic agenda as the president seeks a second term in 2024, cited wealth gains, job market strength and rising real wages in 2023 as evidence that the US is moving forward from an inflation surge that has depressed Biden’s approval ratings.