"Financial Instability: 40% of Americans Unable to Cover $400 Emergency Expense, Fed Survey Finds"

The Federal Reserve's 2022 Economic Well-Being of U.S. Households survey shows that 37% of Americans lack enough money to cover a $400 emergency expense, up from 32% in 2021. Additionally, 18% of Americans said the largest expense they could cover using only their savings was under $100. The survey found that self-reported financial well-being was among the lowest levels observed since 2016, and higher prices have negatively affected most households. Despite a low unemployment rate, most Americans are struggling to keep up with inflation, and many are avoiding big-ticket discretionary purchases. The financial burden of high borrowing costs and rising prices is rearing its head in spending this year as well.