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Marketplace All-in-One

A glitch in the consumer-driven recovery

Marketplace All-in-One

Marketplace

News, Business

4.5 • 1.4K Ratings

🗓️ 25 August 2023

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Consumer spending has been fairly resilient in the face of high inflation (see Taylor Swift, Beyoncé). But, the Federal Reserve’s interest rate hikes can pack a punch, and it’s showing up in Americans’ credit card bills. We’ll hear a bit of Macy’s quarterly earnings call and unpack what it tells us about consumer habits. And, AI is being used to give people their voices back. And, we’ll play a round of Name That Tune, economic anthem-style.

Here’s everything we talked about today:

    Join us tomorrow for Economics on Tap. The YouTube livestream starts at 3:30 p.m. Pacific time, 6:30 p.m. Eastern. We’ll have news, drinks, a game and more.

    Transcript

    Click on a timestamp to play from that location

    0:00.0

    I'm ready Amy's ready everybody I'm car is welcome back to make me smart where we make today make sense

    0:12.8

    And I'm Amy Scott in for Kimberly Adams. Thanks everyone for joining us today. It is Thursday August 24th

    0:20.6

    We're going to do our Thursday thing a little audio from this week's news. We'll chat about it

    0:25.6

    probably three four times I guess and then we will um depart

    0:30.0

    Right. Yes. All right. We've got some good clips for you today. Let's start with the first one shall we?

    0:35.1

    We experienced an increased rate of delinquencies within the credit card portfolio are across all stages of age balances

    0:42.8

    While we had expected delinquencies to rise as part of our formalizing credit environment

    0:47.7

    The speed at which the increase occurred for us and the broader credit card industry since our first quarter earnings call was faster than planned

    0:56.4

    Yeah, so that was from the Macy's earnings call earlier this week Mitchell Hartman did a story about retail and the way consumer habits were changing and what that's doing to him

    1:09.2

    I think there are a couple of things that are interesting in that piece tape well one in the piece tape and then then then one which I will share with you

    1:14.8

    uh

    1:15.6

    Obviously loaned delinquencies credit card delinquencies

    1:18.7

    Piling up more quickly than they were thinking they might that is not great. That is very not great

    1:25.9

    And it's a little glitch in the whole consumer driven recovery right number one number two as a result of some of those glitches

    1:33.6

    Macy's actually while it hit its earnings target

    1:35.8

    Macy's actually lost money April through June, which is I mean that's something one of big reads all I like that actually net net loses money. So yeah

    1:46.3

    Yeah, and people just generally

    1:48.7

    are

    1:49.9

    struggling a little bit to pay their bills and part of this is because more get or sorry

    1:53.8

    Interest rates on credit cards have gotten so high. So their balances are higher people are having trouble paying the bills not spending

    2:00.5

    Therefore as much on their Macy's credit cards

    2:03.6

    And they actually had to write down some of that debt and just say it's not going to get paid back

    ...

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