Daily Spotlight

Financially Healthy, Wealthy, and Wise

Recent reports from big banks and the Federal Reserve show that consumers' finances are healthy and workers are adapting to economic changes. Bank of America's CEO Brian Moynihan described the economy as "healthy" and consumers as "resilient." BofA said that combined spending on its credit and debit cards was up 9% on a year-over-year basis in 2Q. Coincidently, spending during Amazon's Prime day was up also up about 9% according to Adobe Analytics. Those are encouraging indicators for back-to-school spending. In Wells Fargo's earnings release, CEO Charlie Scharf said "Consumers and businesses remain very strong. Consumer spending is higher, charge-offs and delinquencies are lower, and savings and investments are growing across consumer segments." Argus saw a confirmation of constructive borrowing conditions in the minutes of the June 16-17 FOMC meeting. "Credit continued to be generally available to most businesses, households, and municipalities. Bank lending continued to expand, and issuance of corporate bonds remained solid, partly driven by the financing needs of AI-related investments." In the Monetary Policy Report that the Fed sent to Capitol Hill in advance of Chairman Warsh's testimony, the Fed said "Broadly, household balance sheets and finances appear healthy. Aggregate wealth is high, and debt remains at moderate levels. Net worth is elevated relative to its 2019 level and has risen in recent years for households across the income distribution." Inflation and a changing job market are weighing on many households, but the Fed's Summary of Current Economic Conditions, known as the Beige Book, showed that some employers and students are adapting. The Cleveland Fed said that community college contacts expect enrollments to grow in fall 2026, with strong demand for short-term credentials, skilled trades, and apprenticeships in IT, healthcare, and advanced manufacturing....  spending. In Wells Fargo's earnings release, CEO Charlie Scharf said "Consumers and businesses remain very strong. Consumer spending is higher, charge-offs and delinquencies are lower, and savings and investments are growing across consumer segments." Argus saw a confirmation of constructive borrowing conditions in the minutes of the June 16-17 FOMC meeting. "Credit continued to be generally available to most businesses, households, and municipalities. Bank lending continued to expand, and issuance of corporate bonds remained solid, partly driven by the financing needs of AI-related investments." In the Monetary Policy Report that the Fed sent to Capitol Hill in advance of Chairman Warsh's testimony, the Fed said "Broadly, household balance sheets and finances appear healthy. Aggregate wealth is high, and debt remains at moderate levels. Net worth is elevated relative to its 2019 level and has risen in recent years for households across the income distribution." Inflation and a changing job market are weighing on many households, but the Fed's Summary of Current Economic Conditions, known as the Beige Book, showed that some employers and students are adapting. The Cleveland Fed said that community college contacts expect enrollments to grow in fall 2026, with strong demand for short-term credentials, skilled trades, and apprenticeships in IT, healthcare, and advanced manufacturing.  more

Market Podcast

Analyst
Quick Notes

Weekly Economic Commentary