Record 35% of Adults Financially Worse Off in 2022 Amid Inflation Surge – Fed Data
In 2022, inflation pushed the financial well-being of U.S. adults to its lowest point in seven years, according to the Federal Reserve's latest survey.
The Federal Reserve reports that financial well-being among adults reached its lowest level in seven years in 2022.
In 2022, a record-breaking 35% of adults experienced a decline in their financial situation compared to the previous year, largely driven by persistent inflation impacting household budgets nationwide.
This insight comes from the Federal Reserve's 2022 Economic Well-Being of U.S. Households survey, which revealed that only 68% of adults felt financially stable—a 5% drop from 2021.
Since the survey's inception in 2014, this marks the highest percentage of adults reporting financial hardship.
Inflation peaked at 9.1% in June 2022—the highest in four decades—and although it has since decreased to 4.9%, experts anticipate it will remain above the Federal Reserve's 2% target for the foreseeable future.
The Fed’s interest rate hikes aimed at curbing inflation have increased borrowing costs, placing additional strain on consumers.
Monthly expenses rose for nearly half of adults in 2022 compared to 2021, while nearly 25% reported no increase in income, intensifying financial pressure.
Inflation also impacted savings behavior; about 50% of adults reduced their savings contributions due to higher living costs. Alarmingly, 20% of adults could only cover up to $100 in unexpected expenses from their savings, and 14% could cover between $100 and $499.
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