Long-time Chief Executive Officer Ben Silbermann of Pinterest would step down, handing over the reins of the social media platform to Google...

Stock Market

Google executive to take over as a new CEO of Pinterest

Top accounting firm Ernst & Young has been slammed with a record $100 million fine from the US government...

Stock Market

Accounting firm gets 100 million fine for faulty regulations

The Indian rupee slipped into a fresh low today and extended losses against the US dollar.

Forex

The rupee tumbled to a new low against the dollar in the midst of an increase in crude oil price

Wall Street saw a sharp fall at its closing in a broad sell-off. Consumers' worries over recession have sparked up...

Stock Market

Wall Street Lose Balance after recession strikes growth fear among consumers’

Soaring inflation may be pushing the US economy into a deep recession. Last week's 0.75% interest rate hike by the Federal Reserve...

Stock Market

Inflation ringing the recession bell - Mohammed Shaheen

Economic Indicators

9 Feb 2022

U.S. Consumer Debt Loads Grew more by $1 trillion in 2021

The Index Today

According to a report released on Tuesday by the New York Federal Reserve, U.S. consumer debt loads grew in 2021 by the largest amount in 14 years as people ramped up borrowing to afford homes, cars and other goods that are becoming more expensive.

Researchers said that the higher borrowing was fueled in part by rising prices as consumers cope with the strongest inflation seen in nearly four decades. And households, supported by increased savings and higher incomes, seem to be handling the larger debt loads well so far.

"The aggregate balances of newly opened mortgage and auto loans sharply increased in 2021, corresponding to increases in home and car prices," Wilbert Van Der Klaauw, senior vice president at the New York Fed, said in a statement.

According to the New York Fed's quarterly report on household debt and credit, total household debt grew by $1 trillion last year, marking the largest increase in overall debt since 2007. The total debt balance is now $1.4 trillion higher than it was at the end of 2019.

Over $4.5 trillion in mortgages were originated in 2021, reaching a historic high for the database, which goes back to 1999. Mortgage balances increased by $258 billion in the fourth quarter to $10.93 trillion at the end of December.

Clay pottery with table linens