U.S. families' ability to meet debt payments deteriorated significantly over the past three years, the Federal Reserve said Friday.
The Federal Reserve Board on Friday released the results of the 2025 Survey of Consumer Finances, which provides the public and policymakers with detailed insights into the economic condition of American families, it said in a press release.
"Families' propensity to stay current on their financial obligations worsened between 2022 and 2025. Families were more likely to be behind on their financial obligations than at any point since the 2010 survey. Between the 2022 and 2025 surveys, the share of families that reported being behind on loan payments sharply increased from about 12 percent to almost 20 percent. Furthermore, more than 8 percent reported being two months late or more, up from 5 percent in 2022," said the Fed survey.
"The fraction of families with debt payment-to-income ratios greater than 40 percent, which are families with particularly high debt payment obligations relative to their incomes, increased from 6.5 to 8.6 percent, a level last seen in the 2013 survey," the Friday survey said.
At the same time, the net worth of higher earners soared during the period. "For families in the top decile of the usual income distribution, family median net worth grew 31 percent," it said, noting that lower-income families saw some declines in their wealth.
Net worth declined substantially for the youngest families, and exhibited large gains for the oldest ones, said the survey.
"Families older than 75 saw substantial gains in both median and mean net worth (37 percent and 10 percent, respectively)," and "mean income declined 25 percent for families aged 35 to 44, driven by declines in capital gains income," it said.
The report covers a period where the U.S. economy continued to grow, but with inflation rates not seen since the early 1980s, said a CNBC report.
US families' ability to meet debt payments worsens significantly: Fed survey
US families' ability to meet debt payments worsens significantly: Fed survey
The sixth China-Pacific Island Countries Political Leadership Dialogue was held in Beijing on Saturday, where political figures from China and Pacific island countries held in-depth discussions on deepening practical cooperation across various fields and building a China-Pacific island Countries community with a shared future.
Liu Haixing, head of the International Department of the Communist Party of China (CPC) Central Committee, said China and Pacific island countries have always adhered to mutual respect and equal treatment though they differ in natural endowments, history, culture, and social systems.
China never interferes in the internal affairs of Pacific Island countries, nor does it ever treat them as an arena for major power competition. China also highly appreciates that Pacific island countries having diplomatic relations with China firmly abide by the one-China principle and support China's just position, Liu said.
The CPC is willing to work with political parties and leaders of Pacific island countries to contribute more party strength to building a China-Pacific Island Countries community with a shared future, he said.
Leaders of political parties from Pacific island countries said China is a good friend and good partner to them, and that bilateral relations have been continuously consolidated and developed based on mutual respect for sovereignty, non-interference in each other's internal affairs and mutually beneficial cooperation.
They expressed their willingness to continue strengthening cooperation with China in infrastructure, agriculture, healthcare, education, disaster reduction and capacity building, and to further deepen their friendship with China.
"We appreciate the willingness of our host to hear our specific priorities. This dialogue is an opportunity to deepen that understanding and explore practical ways in which cooperation can improve lives of our people," said Viliami Uasike Latu, Tongan deputy prime minister.
"China wants to see Pacific island countries prosper into economic development, real development, real changes to affect the livelihood of people in the Pacific. That's basically my understanding. I see that they're not for geopolitics," said Morris Tovebae, general secretary of the Pangu Party in Papua New Guinea.
6th China-Pacific Island Countries Political Leadership Dialogue held in Beijing
