According to data recently published by the New York Federal Reserve's Microeconomic Data Center, during the third quarter of this year, American household debt reached one of its highest levels.

In this regard, Donghoon Lee, economic research advisor at the New York Federal Reserve, indicated that “Household debt balances are growing at a moderate pace, and delinquency rates are stabilizing.” According to the quarterly report, household debt reached $197 billion. “Relatively low mortgage delinquency rates reflect the resilience of the housing market, driven by ample equity tied up in homes and tight lending criteria,” Lee said. The analysis broke down that credit card balances increased by $24 billion, auto loans by $1.66 trillion, and student loans by $15 billion, while mortgage balances rose to $137 billion during the quarter. Although interest rates fell again by 25 percentage points, Federal Reserve Chairman Jerome Powell said that “lower-income consumers are struggling, buying less and opting for lower-cost products, but at the top, those with higher incomes and wealth are spending.”