Citigroup CEO Jane Fraser says low-income consumers have turned far more cautious with spending
Citigroup CEO Jane Fraser says low-income consumers have turned far more cautious with spending CNBC
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Citigroup CEO Jane Fraser Highlights Diverging Consumer Behavior Amid Inflation
Introduction
Citigroup CEO Jane Fraser stated on Monday that consumer behavior has diverged as inflation for goods and services makes life harder for many Americans. Fraser, who leads one of the largest U.S. credit card issuers, highlighted the emergence of a “K-shaped consumer” where the affluent continue to spend, while lower-income Americans have become more cautious with their consumption.
Consumer Behavior
Fraser mentioned in an interview with CNBC’s Sara Eisen that a significant portion of spending growth has been observed among affluent customers in recent quarters. On the other hand, low-income consumers are exhibiting more caution due to the high and increasing cost of living. Although employment opportunities exist for them, their debt servicing levels have risen compared to before.
Impact of Inflation and Federal Reserve’s Role
The stock market has been closely monitoring when the Federal Reserve will begin to ease interest rates after a series of 11 hikes. Strong employment figures and persistent inflation in certain categories have complicated the situation, leading to revised expectations for when easing will commence. As a result, Americans will have to endure higher rates for credit card debt, auto loans, and mortgages for a longer period. Fraser expressed hope for economic conditions that would allow rates to decrease sooner rather than later, emphasizing the challenges of achieving a soft landing where higher rates reduce inflation without triggering an economic recession.
Sustainable Development Goals (SDGs)
The issues highlighted by Fraser’s observations align with several Sustainable Development Goals (SDGs) set by the United Nations. These goals include:
- No Poverty
- Reduced Inequalities
- Decent Work and Economic Growth
- Sustainable Cities and Communities
- Responsible Consumption and Production
Conclusion
The diverging consumer behavior in response to inflation and the challenges faced by low-income Americans underscore the importance of addressing the Sustainable Development Goals. As the CEO of Citigroup, Fraser acknowledges the need for economic conditions that support a soft landing and enable rates to decrease. By focusing on the SDGs, policymakers and stakeholders can work towards creating a more equitable and sustainable economy for all.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions | Not mentioned or implied in the article |
| SDG 8: Decent Work and Economic Growth | 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value | Not mentioned or implied in the article |
| SDG 10: Reduced Inequalities | 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average | Not mentioned or implied in the article |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve the sustainable management and efficient use of natural resources | Not mentioned or implied in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty
- SDG 8: Decent Work and Economic Growth
- SDG 10: Reduced Inequalities
- SDG 12: Responsible Consumption and Production
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions
- Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
- Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average
- Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No, there are no indicators mentioned or implied in the article that can be used to measure progress towards the identified targets.
Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: cnbc.com
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