Marketplace · Friday, July 24, 2026
Stacy Vanek Smith expresses surprise that consumers continue to spend robustly despite real wages not keeping pace with inflation and rising consumer debt. She questions how long this trend can be sustained, given the increasing borrowing costs.
“I keep thinking, okay, here's when the other shoe is going to drop. Exactly because of what you said about consumer sentiment. We see real wages, meaning wages aren't keeping up with inflation.”
“I keep expecting to see consumer spending get pulled back. It has not happened so far. But also consumer debt is rising and of course, as we know, borrowing costs are on the rise too.”
“I don't know how much longer this can go on. But we have like kept we've been spending like champions and we have not pulled back really.”