Household financial conditions Continued vigorous expansion depends importantly on consumer spending, so let me spend a few minutes on the financial condition of the household sector. Some commentators have expressed concern about the rapid growth in household debt in recent years. They fear that households have become overextended and will need to rein in their spending to keep their debt burdens under control.
My view is considerably more sanguine. Although there are pockets of financial stress among households, the sector as a whole appears to be in good shape. It is true that households have taken on quite a bit of debt over the past several years.