Liberty Street Economics
Return to Liberty Street Economics Home Page

28 posts on "Household Finance"

February 18, 2014

Just Released: Who’s Borrowing Now? The Young and the Riskless!

Andrew Haughwout, Donghoon Lee, Wilbert van der Klaauw, and David Yun

According to today’s release of the New York Fed’s 2013:Q4 Household Debt and Credit Report, aggregate consumer debt increased by $241 billion in the fourth quarter, the largest quarter-to-quarter increase since 2007. More importantly, between 2012:Q4 and 2013:Q4, total household debt rose $180 billion, marking the first four-quarter increase in outstanding debt since 2008. As net household borrowing resumes, it is interesting to see who is driving these balance changes, and to compare some of today’s patterns with those of the boom period.

Continue reading "Just Released: Who’s Borrowing Now? The Young and the Riskless!" »

Posted by Blog Author at 11:15 AM in Household Finance, Housing | Permalink | Comments (1)

December 06, 2013

Introducing the FRBNY Survey of Consumer Expectations: Household Finance Expectations

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw, and Basit Zafar

Note: We aren’t releasing the underlying data yet, but we’ll be making them available to the public sometime in first-quarter 2014. So please stay tuned.

In this fourth and final post in our series describing the new FRBNY Survey of Consumer Expectations (SCE), we present the final component of the survey, dedicated to household finance. The information collected in the SCE on household income, spending, and access to credit will provide a real-time picture of U.S. households’ situation and perceptions as well as rich and unique data for use by policymakers, researchers, and the public. While other surveys, such as the triennial Survey of Consumer Finances, provide data on the finances of U.S. families, few data sources provide timely information on such a broad set of outcomes.


Continue reading "Introducing the FRBNY Survey of Consumer Expectations: Household Finance Expectations" »

Posted by Blog Author at 7:00 AM in Household Finance | Permalink | Comments (3)

December 05, 2013

Introducing the FRBNY Survey of Consumer Expectations: Labor Market Expectations

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw, and Basit Zafar

Note: We aren’t releasing the underlying data yet, but we’ll be making them available to the public sometime in first-quarter 2014. So please stay tuned.

In the previous two blog postings in this series, we described the goals, structure, and content of the new FRBNY Survey of Consumer Expectations (SCE) and presented some findings regarding inflation expectations. In this third posting, we focus on the labor market component of the SCE.

Continue reading "Introducing the FRBNY Survey of Consumer Expectations: Labor Market Expectations" »

Posted by Blog Author at 7:00 AM in Household Finance, Monetary Policy | Permalink | Comments (0)

December 04, 2013

Introducing the FRBNY Survey of Consumer Expectations: Measuring Price Inflation Expectations

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw, and Basit Zafar

Note: We aren’t releasing the underlying data yet, but we’ll be making them available to the public sometime in first-quarter 2014. So please stay tuned.

In this second of a series of four blog postings, we discuss the data on inflation expectations collected in our new FRBNY Survey of Consumer Expectations (SCE). Inflation expectations are a key consideration for monetary policy as they are believed to influence consumer behavior, thereby affecting economic activity and actual inflation. The SCE data on inflation expectations represent a major innovation as they contain information not previously collected from consumers on a regular basis. In this post, we provide some background on the survey and present some initial findings.

Continue reading "Introducing the FRBNY Survey of Consumer Expectations: Measuring Price Inflation Expectations" »

Posted by Blog Author at 7:05 AM in Household Finance, Monetary Policy | Permalink | Comments (0)

Introducing the FRBNY Survey of Consumer Expectations: Survey Goals, Design, and Content

Olivier Armantier, Giorgio Topa, Wilbert van der Klaauw, and Basit Zafar

Note: We aren’t releasing the underlying data yet, but we’ll be making them available to the public sometime in first-quarter 2014. So please stay tuned.

Starting in the first quarter of 2014, the Federal Reserve Bank of New York (FRBNY) will begin reporting findings from a new national survey designed to elicit consumers’ expectations for a wide range of household-level and aggregate economic and financial conditions. This week, we provide an introduction to the new survey in a series of four blog posts. In this first post, we discuss the overall objectives of the new survey, its sample design, and content. In the posts that follow, we will provide further details and present preliminary findings from the survey on three broad categories of expectations: those relating to inflation, the labor market, and household finance.

Continue reading "Introducing the FRBNY Survey of Consumer Expectations: Survey Goals, Design, and Content " »

Posted by Blog Author at 7:00 AM in Household Finance | Permalink | Comments (0)

November 14, 2013

Just Released: Deleveraging Decelerates and Household Balances Increase

Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw

Today, the New York Fed released the 2013:Q3 Quarterly Report on Household Debt and Credit. The data show the first substantial increase in outstanding balances since 2008, when Americans began reducing their debt. As of September 30, 2013, total consumer indebtedness was $11.28 trillion, up 1.1 percent from its level in the previous quarter, although still considerably below the peak of $12.67 trillion in 2008:Q3. This quarter, the increase was boosted by nearly across-the-board growth. Balances on mortgages, auto loans, student loans, and credit cards all increased. Balances on home equity lines of credit (HELOCs) were the only exception, with a $5 billion decrease. To better convey the implications of these balance changes, this post briefly updates our previous deleveraging analyses.

Continue reading "Just Released: Deleveraging Decelerates and Household Balances Increase" »

Posted by Blog Author at 11:15 AM in Household Finance | Permalink | Comments (0)

November 06, 2013

(Unmet) Credit Demand of American Households

Basit Zafar, Max Livingston, and Wilbert van der Klaauw

One of the direct effects of the 2008 financial crisis on U.S. households was a sharp tightening of credit. Households that had previously been able to borrow relatively freely through credit cards, home equity loans, or personal loans suddenly found those lines closed off—just when they needed them the most. In recent months, aggregate statistics such as the Federal Reserve’s Consumer Credit series and the Senior Loan Officer Opinion Survey have shown a gradual improvement in consumer credit. The former series is an indicator of interaction of credit supply and demand, while the latter shows only short-term changes in demand and supply (as reported by lenders) separately. It is, therefore, not entirely clear whether the observed trends are a result of fluctuations in demand or supply. Are those demanding credit getting it? What differences are there among U.S. consumers in their demand for and access to credit?

Continue reading "(Unmet) Credit Demand of American Households" »

Posted by Blog Author at 11:59 AM in Household Finance | Permalink | Comments (2)

August 14, 2013

Just Released: Who Is Driving the Auto Lending Recovery?

Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw

This morning, the New York Fed released its Quarterly Report on Household Debt and Credit for the second quarter of 2013. It shows a $78 billion decline in overall household debt from the previous period. Delinquency rates improved considerably, with the overall ninety-plus day delinquency rate falling to 5.7 percent, the lowest it has been since mid-2008. The Quarterly Report is based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample drawn from anonymized Equifax credit data.

Continue reading "Just Released: Who Is Driving the Auto Lending Recovery?" »

Posted by Blog Author at 11:00 AM in Household Finance | Permalink | Comments (0)

May 29, 2013

Piggy Banks

Donald P. Morgan and Katherine Samolyk

What do banks do? Ask an economist and you’ll get a variety of answers. Banks play a vital role in allocating capital by linking savers and borrowers; they produce information by screening and monitoring borrowers; they create liquidity; they share and distribute risk; they engage in maturity transformation by borrowing short and lending long. What you won’t usually hear is that banks may help people stick to an optimal savings plan that they might not be able to stick to if they invested their money themselves. In other words, banks may serve as piggy banks by preventing people from consuming assets when the return to investing is high, even when the temptation to consume is strong.


Continue reading "Piggy Banks" »

Posted by Blog Author at 7:00 AM in Financial Institutions, Household Finance | Permalink | Comments (0)

May 15, 2013

My Two (Per)cents: How Are American Workers Dealing with the Payroll Tax Hike?

Basit Zafar, Max Livingston, and Wilbert van der Klaauw

The payroll tax cut, which was in place during all of 2011 and 2012, reduced Social Security and Medicare taxes withheld from workers’ paychecks by 2 percent. This tax cut affected nearly 155 million workers in the United States, and put an additional $1,000 a year in the pocket of an average household earning $50,000. As part of the “fiscal cliff” negotiations, Congress allowed the 2011-12 payroll tax cut to expire at the end of 2012, and the higher income that workers had grown accustomed to was gone. In this post, we explore the implications of the payroll tax increase for U.S. workers.

Continue reading "My Two (Per)cents: How Are American Workers Dealing with the Payroll Tax Hike?" »

Posted by Blog Author at 7:00 AM in Fiscal Policy, Household Finance | Permalink | Comments (0)
About the Blog
Liberty Street Economics features insight and analysis from economists working at the intersection of research and Fed policymaking.

The views expressed are those of the authors, and do not necessarily reflect the position of the New York Fed or the Federal Reserve System.

Upcoming Posts
Useful Links
Feedback & Custom Guidelines
Liberty Street Economics invites you to comment on a post.
Comment Guidelines
We encourage you to submit comments, queries and suggestions on our blog entries. We will post them below the entry, subject to the following guidelines:
Please be brief: Comments are limited to 1500 characters.
Please be quick: Comments submitted more than 1 week after the blog entry appears will not be posted.
Please try to submit before COB on Friday: Comments submitted after that will not be posted until Monday morning.
Please be on-topic and patient: Comments are moderated and will not appear until they have been reviewed to ensure that they are substantive and clearly related to the topic of the post. The moderator will not post comments that are abusive, harassing, or threatening; obscene or vulgar; or commercial in nature; as well as comments that constitute a personal attack.  We reserve the right not to post a comment; no notice will be given regarding whether a submission will or will not be posted.
Archives