62.7% of Americans lack emergency funds

A recent survey from the New York Federal Reserve reveals that many Americans are struggling to find emergency funds. The survey showed that only 62.7% of U.S. households can gather $2,000 within a month for unexpected expenses. This is the lowest percentage recorded since tracking began in 2015. The rising cost of living makes this situation even tougher. According to Apollo chief economist Torsten Sløk, the Consumer Price Index is now 35% higher than it was in 2015. While prices did increase less than expected recently, there are ongoing concerns about how tariffs might impact the economy. Federal Reserve Chair Jerome Powell noted that inflation is expected to rise more quickly this year due to these tariffs. However, he believes they will not have a long-lasting effect on the economy. Retail companies are also feeling the pressure. Many reported weaker than expected sales in the first quarter. Ed Stack, chairman of Dick's Sporting Goods, commented on the uncertainty surrounding tariffs and how they may affect consumer spending. Walmart's CEO, Doug McMillon, has observed that some customers are showing signs of financial stress. He noted that many consumers are running out of money before the month's end and are buying smaller quantities of products to manage their budgets.