The Federal Reserve Bank of New York’s recent data reveals a sharp rise in credit card balances, reaching $1.03 trillion in Q2 2023. This increment, a jump of $45 billion from the last quarter, stands out as the most significant among all debt categories the NY Fed has examined.
After a period of impressively low delinquencies during the pandemic, credit card performance has taken a hit. The transition into delinquency has grown by 0.7 percentage points. Yet, Joelle Scally from the New York Fed notes a trend towards stabilization, reminiscent of pre-pandemic times.