Half of Americans Feel the Pinch: Personal Finances Worsen Since 2020 Despite Inflation Easing

A Yahoo Finance article revealed a significant decline in consumer confidence among American families earning under $100,000. Despite the inflation rate dropping to 3.4% in December 2023 from a peak of 7.2% in December 2021, high interest rates have escalated the cost of mortgages, credit card debt, car loans, and other expenses. The Federal Reserve’s aggressive rate hikes, peaking at 5.25-5.5%, have intensified financial burdens. Although average hourly earnings rose by 15% from December 2020 to December 2023, inflation outpaced wage growth, affecting the ability of many to afford necessities​