Part 5/9:
American consumers are experiencing a strain never seen before, with consumer credit surpassing $5 trillion, accompanied by rising delinquencies and defaults. This precarious situation is exacerbated by ongoing inflation, which, despite claims of moderation, continues to erode purchasing power. The Federal Reserve is faced with an intricate dilemma; rate cuts may seem prudent, but they coincide with persistent inflation that has yet to meet the desired targets.