Debt is on the rise

May 13, 2026

AI Summary

5 min read

Household debt in the US rose slightly in the first quarter, according to a Federal Reserve Bank of New York report, amid mixed trends across debt categories and rising student loan delinquencies. The episode also covers upcoming US-China talks touching on Iran, AI, and economic rivalry, plus a brief note on food price inflation.

Household Debt Increases Modestly

Total US household debt grew by $18 billion in the first three months of the year, reaching new highs. Credit card balances bucked the trend, falling $25 billion, which the New York Fed attributes to typical post-holiday spending drops in January. Instead, gains came from secured debt: mortgage balances increased $21 billion, home equity lines of credit (HELOCs) rose $12 billion—for the 16th straight quarter—and auto loans climbed $18 billion. These shifts reflect ongoing housing and vehicle financing amid higher interest rates, though the overall rise was small relative to recent quarters.

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What you'll learn

1 (01:17) **Household Debt Increases** - Q1 debt rises $18B per NY Fed report
2 (02:21) **Student Loan Defaults Surge** - 2.5M more borrowers default, averaging age 40
3 (03:15) **Trump Rejects Iran Deal Link to US Finances** - Denies financial struggles motivate negotiations
4 (03:26) **Tomato Prices Jump 40%** - April rise tied to weather disruptions and import tariffs
5 (04:58) **US-China Summit on Iran, Taiwan, Economics** - Beijing talks previewed amid rivalry
6 (05:32) **China's Stake in Iran Oil** - Supplies 1.5% of energy, raising domestic prices short-term
7 (06:29) **AI Competition in US-China Talks** - Debate AGI race, chip restrictions, shared risks like job loss

+ Full timestamped outline available in the app

Show Notes

Household debt ticked up slightly in the first three months of this year, increasing by $18 billion, according to the New York Fed. Credit card debt is actually down slightly, but mortgage balances, home equity lines of credit, and car loan balances all grew. We unpack. Plus, later in this morning's show, how might economic tensions appear at the summit between President Donald Trump and Chinese President Xi Jinping?