"We're seeing them come out where we thought they would come out, and basically delinquencies have gone back to where they were to more or less in '19..." Moynihan stated, emphasizing that current delinquency rates on credit cards and auto loans have normalized and are not cause for alarm. He pointed out that despite some concerns about consumer debt levels, these rates are comparable to pre-pandemic times, indicating a stable environment for households and lending institutions.
Moynihan noted, "Consumers have the money in their accounts, they're spending wisely, they're employed, they're getting paid more." This reflects his belief that consumer finances are fundamentally strong, and the uptick in delinquency rates should not be misconstrued as a sign of economic distress, but rather a return to more typical levels of debt repayment.
"Inflation has also been 'tough' on some income groups," he acknowledged, adding that this has affected their financial stability. The commentary highlights the variability in household financial health amid inflationary pressures, particularly among lower-income brackets who may still be struggling despite an overall normalization in delinquency rates.
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