American consumers are facing another test, from banking-sector turmoil and tighter financial conditions, as households already grappling with elevated inflation and rising interest rates threaten to trim the spending that has been a hallmark of the resilient U.S. economy.
Unrest in the banking sector could make it more difficult for some consumers to obtain loans to buy homes, cars and other big-ticket items. Economists say much of the near-term impact could depend more on Americans’ psychology—whether they have confidence the economy will weather the banking storm that might or might not directly hit their pocketbooks.
Source : American Consumer Tested by Ongoing Banking Turmoil