Americans racked up $40 billion more in debt in June, Fed says

Americans’ borrowing rose 10.5% in June, compared with 6.3% in May, according to the Fed’s G.19 consumer credit report. Revolving debt – a rough proxy for outstanding credit card balances – rose 16% after a 7.8% increase in May.

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Non-revolving debt, which includes loans such as auto loans and student loans, rose 8.8 percent after a 5.8 percent increase in May. These figures exclude mortgage balances, which account for the majority of household debt.

On a quarterly basis, Americans borrowed an additional $98.9 billion, the Fed said. Friday’s report follows a separate announcement from the New York Federal Reserve that said Americans’ non-housing debt rose by $103 billion in the second quarter, the biggest increase since 2016.
The jump comes as inflation has remained at the top for four decades. Last month, the Bureau of Labor Statistics reported that inflation jumped to an annual 9.1% in June, with increases in food, gas and a broad-based increase in nearly all categories driven by a combination of extremely high energy costs and supply problems.

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