US debt stress flashes warning unseen since Great Recession

· Economy · United States

Researchers found that while wealth disparities narrowed somewhat, Americans' ability to meet debt payments deteriorated significantly, flashing a warning not seen since the Great Recession. A new report projected that Trump's anti-immigration campaign could cut social security benefits for elderly Americans by an average of $2,152 a year, an 8.6% reduction, by 2034 and every year after. Lazard's Peter Orszag warned that both social security and Medicare have looming problems, while homeownership affordability continues to slip as mortgage rates rise.

Why it matters：Rising debt stress and social program strain could weigh on US consumer spending and the broader economy.

Key points

  • Debt-payment ability deteriorated significantly, researchers found.
  • Social security benefits could fall $2,152 a year by 2034.
  • Orszag warned social security and Medicare face looming problems.

Sources (original reporting)

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