A Tale of Two Consumers: JPMorgan Chase vs. Discover Financial's Credit Card Trends
Since the pandemic, consumers across the board registered higher cash balances thanks to built-up savings from the pandemic and from stimulus checks. But in 2022, consumers started using up those savings, once again accumulated debt, and are now also dealing with inflation and higher interest rates. All this combined to increase borrowing costs, which cut into their savings.
Despite all that, most bank CEOs report noticing that lower- and some moderate-income populations are seeing their finances normalize faster than higher-income consumers. That theme is also playing out in recent bank earnings results. Here's what's going on.
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Source Fool.com
