US Consumer Credit Health Improves Amid Rising Oil Prices and Inflation Concerns

Second‑quarter data from major U.S. banks show a decline in charge‑off and non‑performing loan ratios, suggesting that consumer credit is in better shape than a year ago. Bank of America reported a charge‑off ratio of 0.47% and a non‑performing loan ratio of 0.47%, both down from the previous quarter and from a year earlier. Wells Fargo’s charge‑off ratio fell to 0.34% and its non‑performing loan ratio to 0.77%, while JPMorgan Chase’s metrics also showed improvement, though not as pronounced.

At the same time, crude oil prices approaching $100 a barrel have revived inflation worries. The price surge, linked to renewed Middle‑East tensions, is prompting central banks in the United States, United Kingdom, Japan and the Eurozone to signal heightened vigilance. The Federal Reserve’s July rate decision is expected to be more hawkish, with some officials advocating a possible hike, while the Bank of England and the Bank of Japan are also under pressure to address energy‑driven price pressures. Market participants anticipate potential policy moves as early as September.