(TheRedWire.com) – The Federal Reserve Board’s new report has shown that a record number of Americans have stated that this year they were worse off financially than they were last year.
Specifically, the “Economic Well-Being of U.S. Households” report states that 35 percent of American adults said that they were worse off in 2022 than they had been a year earlier. This is the highest share since the survey first started asking this question in 2014.
The share of Americans who stated that they were doing “at least okay” financially also decreased. In 2021, 73 percent of Americans had stated they were doing okay, while in 2022, 68 percent had said the same. This 5 percent decrease resulted in the figure being the lowest it has been since 2016.
Fifty-four percent of adults specifically noted that they had seen significant changes to their budget because of the increase in prices in the U.S. That number was even higher among Black adults, Hispanic adults, parents with children under the age of 18, and people living with disabilities.
The number of people who also reported having spent less than their income in the month prior to the survey being conducted also decreased to below the level it had been prior to the COVID-19 pandemic. The report points out that the decline in financial well-being has also provided a clearer look into how families have been affected by the economic conditions in 2022.
Federal Reserve Board Governor Michelle W. Bowman has stated that the survey results were an important insight into the challenges that U.S. households face.
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