MNI: Households' View Of Economy Improved In 2024 - Fed Survey

Inflation and prices continued to be the top financial concern among American households whose perceptions of their local and national economies continued to improve at the end of 2024, with a sizeable share of adults saying their family’s monthly income increased compared to the year before, the Federal Reserve reported Wednesday. 

In an annual survey, the Fed said 73% of adults reported “doing okay” financially (39%) or “living comfortably” (34%). The share who said they were better off rose 3 percentage points to 23%. Twenty-nine percent of adults said they were worse off financially than a year earlier, continuing to fall from the series high of 35% in 2022, yet still well above the levels seen in prior years. 

A majority of adults said that changes in the prices they paid over the prior year had made their finances worse, but the share saying so declined from the previous year, the report said. The labor market remained solid and similar shares of people both started and voluntarily left jobs in 2024 compared with 2023. 

The survey was conducted in October. Those able to meet an unexpected USD400 expense using cash or the equivalent, such as a credit card expected to be repaid in full at the next statement, was unchanged from recent years at 63%.