Are US Consumers Ready for the Challenges Ahead?

US households have benefited from a number of government support measures and, financially speaking, have come out of the pandemic relatively unscathed. However, soaring inflation, higher interest rates and uncertainty surrounding the war in Ukraine present additional challenges that could erode confidence and spending. This Economic Viewpoint details the current situation for US households and addresses whether they will be able to weather the storms to come. As long as the labour market remains strong, Americans should be able to navigate any economic pitfalls that arise. However, declining confidence is a major risk.