Seventy percent of Americans feel financially stressed in President Joe Biden’s America, a CNBC Your Money Financial Confidence survey revealed Tuesday.
Inflation, fueled by Biden’s war on American energy, was the main driver of their stress, as 60 percent of respondents pointed to Biden’s inflation as the main reason for financial stress.
On average, Biden’s 40-year-high inflation costs American households an extra $5,200 in 2022 or $433 per month, according to Bloomberg.
Thirty-six percent said increased interest rates caused them stress. The Federal Reserve continued to increase interest rates in March to tamp down inflation, a decision subject to speculation by financial experts, as the central bank weighed reducing soaring inflation and the stability of the banking system.
The interest rate hikes over the past year have negatively impacted banks, influencing public economic sentiment.
“The recent failures of Silicon Valley Bank and Signature Bank and worries about the health of the U.S. financial system add to the uncertainty. Only 13% of adults said they are very confident in America’s banking system,” the poll found. “About a third said the recent banking crisis made them much more concerned about their own financial security, and 42% said it made them somewhat more concerned.”
The poll revealed additional concerning trends, such as the amount of those living paycheck to paycheck and credit card delinquency rates:
The survey found most Americans (58%) are living paycheck to paycheck. Struggling to make ends meet, many are relying on credit cards to cover any shortfalls. Meanwhile, nearly one-quarter of those surveyed said credit card debt also contributed to their financial stress.
Government data shows credit card balances are rising and delinquency rates are increasing. Household debt levels surged by $38 billion in February from a year ago, according to a report by the U.S. Federal Reserve.
Only 45% of U.S. adults said they have an emergency fund. And, for those who do have emergency savings, about 26% polled said they have less than $5,000 saved.
The CNBC poll surveyed 4,336 adults at the end of March. The poll did not report a margin of error.