Citigroup Inc. Chief Executive Officer Jane Fraser is starting to see signs of weakness in US consumers with low credit scores, who have had their savings eaten away by historic levels of inflation.
(Bloomberg) — Citigroup Inc. Chief Executive Officer Jane Fraser is starting to see signs of weakness in US consumers with low credit scores, who have had their savings eaten away by historic levels of inflation.
The company, home to one of the largest credit-card businesses in the world, has seen a pick-up in spending on food and gas in recent months, Fraser said. While the vast majority of consumers have been able to handle the increases, some are beginning to show signs of falling behind.
“We are paying attention to the lower FICO consumers, where there are cracks,” Fraser said in an interview with CNBC. Those consumers’ savings are “very low at the moment, and I think some of the excess savings from Covid years are getting close to depletion.”
For much of the last two years, the Federal Reserve has aggressively raised interest rates to tamp down inflation. The central bank may have to boost rates at least one more time in November to keep things under control, Fraser said.
In the wide-ranging interview, the CEO also discussed her planned restructuring of the company. She said more details about potential job cuts and expense savings will come when the bank reports fourth-quarter earnings in January.
Read More: Fed-Up Fraser Turns to Downsizing to Cure Citi’s Painful Slump
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