Federal Reserve Survey: 73% of Americans Maintain Financial Stability, Inflation Concerns Persist

The Federal Reserve's latest annual survey, conducted in October 2024, reveals that the majority of American adults are maintaining financial stability. Approximately 73% of respondents reported that they are either "doing okay" or "living comfortably," a figure that remains relatively unchanged from the 72% reported in 2023. However, this percentage is lower than the peak of 78% observed during the pandemic in 2021, when substantial government financial aid was provided.

The survey, known as the "Survey of Household Economics and Decisionmaking" (SHED), covered over 12,000 American adults. It found that 63% of respondents could cover unexpected expenses, such as emergency medical bills or car repairs, with cash or its equivalent. This figure has remained consistent in recent years, indicating that households' emergency preparedness has not significantly deteriorated.

Despite a slight improvement in economic sentiment compared to the previous year, overall economic confidence has not returned to pre-pandemic levels. Only 29% of adults described the U.S. economy as "good" or "excellent," although this is an increase from 22% in 2023. However, it is still far below the 50% reported in 2019, before the pandemic.

Another positive sign is the decrease in the proportion of adults who believe their economic situation has worsened compared to a year ago, falling to 29% from a record high of 35% in 2022. However, this figure remains higher than pre-pandemic levels.

Inflation continues to be a concern for American households, particularly the rising prices of food and daily necessities. While most people reported that price fluctuations have negatively impacted their financial situation, this proportion has decreased compared to 2023, suggesting a slight easing of inflationary pressures.

Housing remains a significant issue. Since 2022, the median rent in the U.S. has increased by approximately 10% annually, making housing unaffordable for many, especially in major cities.

The labor market remains robust, with the proportion of adults starting new jobs in 2024 similar to that in 2023. The rates of layoffs and voluntary resignations have also remained stable.

However, confidence in job changes has weakened. Among those who changed jobs in the past year, only 62% felt that their new job was overall better, compared to 72% in 2022.

The report also noted a significant increase in the default rate for "Buy Now, Pay Later" services in 2024, with nearly a quarter of users experiencing payment delays, up from 18% in 2023.