62% of Americans are still living paycheck to paycheck, making it ‘the main financial lifestyle,' report finds

The number of Americans saying they are too stretched has not improved despite high interest rates and prices.

Federal Reserve Chair Jerome Powell said recently that "inflation remains too high," which indicates that interest rates are likely to remain higher for longer.

One bright spot is that some online savings accounts are paying rates over 5%. This is the highest rate savers have earned in almost two decades.

High Inflation

And higher

Interest rates

Continue to weigh heavily on American households

In September, 62% adults reported that they were living in poverty.

paycheck to paycheck

According to a recent study,

LendingClub report

The figures are unchanged from the previous year.

The report stated that "living paycheck to paycheck is the most common financial lifestyle of U.S. consumers."

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"Inflation remains too high"

You can also find out more about the following:

Federal Reserve

Fed Chair Jerome Powell has recently stated that the Fed will not change rates at its two-day meeting next week.

You can also read about the importance of this in our article

"Inflation is still high."

Recent data paints a mixed picture about where the economy is headed.

stands.

Inflation

The Fed's key price measure, the index of personal consumption expenditures, has been showing some signs that the economy is cooling. However, the core index rose 0.3% in September.

Consumer Price Index

Another closely watched inflation gauge,, rose slightly faster than expected over the past month. This was boosted by rising prices for food and gas. In turn, the real average hourly wage fell.

Interest rates are expected to remain the same, according to economists and central banks.

higher for longer

.

The Household must make "tough decisions"

Brett House, professor of economics at Columbia School, said that many households are experiencing financial strain due to the combination high prices and high interest rates.

He added that "many have to make difficult choices to defer their discretionary spending to stay on top" of their loan repayments and costs of necessities. This stress is only exacerbated by the resumption in student loan payments.

According to a separate survey, 74% of Americans are stressed out about their finances.

CNBC Your Money Financial Confidence Survey

In August, a survey was conducted. These feelings are influenced by inflation, rising interest rates, and a lack in savings.

CNBC's survey revealed that 61% more Americans live paycheck to paycheck than they did in March, up from 58%.

LendingClub reports and other sources show that many households have used their cash reserves in the last few months.

Bankrate found that nearly half of adults (49%) have less or no savings in comparison to the previous year.

Survey

.

House stated that those households with high incomes who have remaining balances are receiving "better interest rates than at any other time in recent history."

Bankrate, the leading financial information provider, reports that high-yielding savings accounts, certificates and money market account pay more than 5%.

Most savers were able to earn

In nearly two decades.