The U.S. consumer has been in a place of strength since the pandemic started in early 2020. It may sound counterintuitive, given that during the early months of the pandemic, unemployment surged and broad swaths of the economy closed for months at a time.

But consumers were also spending less as they hunkered down in order to prevent the spread of COVID-19. Numerous stimulus bills and the ultra-low interest rate environment also added to their savings.

That story has changed recently, however, as the high-inflationary environment has begun to drain the savings of Americans, leading them to take on more debt. Staring down the barrel of a potential recession next year, is the U.S. consumer officially in trouble? 

Continue reading

Source Fool.com