Economic Outlook for 2021-2022: The Changing Credit Market

As we head into the fall of 2021, the pace of improvement in the labor market will dictate the pace of policy actions by the Federal Reserve, as well as the sustainability of consumer spending and credit risk. What we already notice in the data is that educational levels and occupational choices go a long way to explaining unemployment and household risk.

There are two sides to the current economic picture for the household sector. On the jobs/income side, we have the labor market, wh…