Decoding the Fed's DFA Report: Q3-2024 Update

dv01's latest analysis of the Federal Reserve's Distribution of Financial Accounts (“DFA”) is now available.

Quick Insights

• Credit Growth Slowdown: Consumer credit growth slowed significantly in Q3-2024, with total and non-mortgage debt falling substantially QoQ.

• Demographic Trends in Debt: Younger households (ages 18–29) saw their total debt decline for the second consecutive quarter, driven by reduced mortgage and student loan debt, while middle-aged households (40–59) experienced sustained growth in credit card balances.

• Deposits Shift to Fixed Income: Declines in deposits are not due to financial strain but represent a strategic move toward higher-yield fixed-income assets as households adapt to rising interest rates.