Consumer spending remains resilient, as evidenced by the latest earnings reports from major credit card companies Visa, Mastercard and American Express. All three reported growth in spending volumes across their customer bases last quarter, signaling that consumers are still opening their wallets despite high inflation and economic uncertainty. Ted Rossman, Senior Industry Analyst at Bankrate, spoke to Yahoo Finance anchor Rachelle Akuffo about rising debt levels, rising prices, and the strong job market fueling continued growth in credit card spending. Rossman believes credit card companies are “having a strong year”, despite big fears of delinquencies and defaults.
“Honestly, from a bank standpoint, this is almost the best possible environment. This is a kind of Goldilocks scenario,” Rossman tells Yahoo Finance, adding: “Balances are up, spending is up, debt is up, interest rates are up and yet people are actually paying this money back.”
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