Consumer Credit Hits New Record With Jumps In Revolving And Non-Revolving Debt

Consumer Credit in Billions of Dollars 2021-06

Consumer Credit Monthly Change 

Consumer Credit Monthky Change 2021-06

Consumer Credit Detail

Consumer Credit in Billions of Dollars Detail 2021-06

Revolving vs Non-Revolving

  • Non-revolving credit includes home mortgage loans, car loans, student loans, personal loans, and home equity loans.
  • Revolving credit consists includes credit cards, personal lines of credit, and home equity lines of credit (HELOCs).

Consumer Credit Synopsis 

  • In June, non-revolving credit rose by $19.83 billion, revolving credit rose by $17.86 billion, and total consumer credit rose by $37.69 billion.
  • Total consumer credit is new record $4,318.65 billion.
  • In May, non-revolving credit rose by $27.60 billion, revolving credit rose by $9.09 billion, and total consumer credit rose by $36.69 billion.
  • Despite a two-month surge in revolving credit of $26.95 billion, revolving credit at $992.25 billion is still down $105.28 billion from the pre-pandemic high of $1,097.53 billion.

Fed is Pleased

Merchants are pleased with these trends and so is the Fed. Both support expansion of credit which is inflationary. 

However, it takes record spending to propel the economy further and wages have not remotely kept up with the price of homes. 

Bubbles keep expanding with no end in sight.

The Fed wants inflation and got it. A "Welcome" Rise in Inflation Comes Sooner than Expected, Now Rate Hikes?

Despite taper talk discussion, if the Fed did not welcome what's happening, it would be doing, not talking.

Year-Over-Year Measures of Inflation

CPI, PCE, CSAI Percent Change 2021-06

Fed's Preferred Measure of Inflation is Only 4.0%, Anyone Believe That?

For discussion of the above chart please see Fed's Preferred Measure of Inflation is Only 4.0%, Anyone Believe That?

Also see "Inflation is Half Our Mandate" and Other Amusing Quotes of the Day

What's Going On?

  • The Fed does not want to hike, so it won't.
  • Meanwhile, the Fed mostly pulls numbers out of its rear orifice to justify the policies it wants to take.
  • By the time the Fed gets around to hiking, an economic bust is overdue.
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