Inflation nation: 61% of Americans are living ‘paycheck to paycheck’

Bidenomics is the resulting failures of the administration’s policies which negatively affect the pockets of Americans. Rising from last year, a horrendous 61% of adults say they are living paycheck to paycheck, according to a new LendingClub report.

Interest rates and inflation have soared and Americans feel the pressure. Federal Reserve Chair Jerome Powell recently said inflation “remains too high” and has warned that more interest rate hikes are possible.

CNBC reports Central bank officials have already raised rates 11 times, pushing the Fed’s key interest rate to a target range of 5.25% to 5.5%, the highest level in more than 22 years.

It’s the lower-income workers that are hit hardest; particularly due to prices for food and necessities. Already, four out of five consumers’ spending habits have been affected by inflation, according to TD Bank’s annual consumer spending index. “Consumers are undoubtedly continuing to feel the impact of inflation and rising interest rates,” said Chris Fred, TD Bank’s head of credit cards and unsecured lending.

78% of consumers earning less than $50,000 a year and 65% of those earning between $50,000 and $100,000 were living paycheck to paycheck in July, both up from a year ago, LendingClub found. Of those earning $100,000 or more, only 44% reported living paycheck to paycheck.

The report adds that roughly 70% of Americans admit to being stressed about finances, according to a separate CNBC Your Money Financial Confidence Survey conducted in March, largely due to inflation, rising interest rates and a lack of savings.

Furthermore, “only 45% of adults said they have an emergency fund. For those who do have emergency savings, about 26% polled said they have less than $5,000 saved.

That survey found that 58% of Americans are living paycheck to paycheck.”