US total household debt levels continued to rise in the third quarter, amid a surge in credit card debt tied to a hot economy, while borrowing troubles increased in a way that if sustained could signal looming turbulence for the economy, a report from the Federal Reserve Bank of New York released Tuesday said.
In its quarterly report, the bank said overall debt levels increased by 1.3% during the third quarter to a level of $17.29 trillion. And in that rise, credit card borrowing levels rose by 4.7% to $1.08 trillion.
Credit card balances experienced a large jump in the third quarter, consistent with strong consumer spending and real GDP growth, said Donghoon Lee, a New York Fed economist, in a press release accompanying the report.
US economic activity in the third quarter took placeat a blistering pacefew economists expect to be repeated in the final three months of the year. Overall activity rose at a well-above-trend pace of 4.9%, the fastest such gain in two years, in an environment where the Fed was raising rates and overall borrowing costs broadly rose.
The surge in borrowing costs has waylaid activity in the housing market amid the highest mortgage rates in decades, and the landscape has fueled worries that many Americans will struggle to manage their debt, especially as high levels of savings during the coronavirus pandemic run down. The New York Fed report found credit issues are rising, albeit from low levels.
Overall debt delinquency increased by 3% as of September from a 2.6% increase in the second quarter, the report said, while still standing below the 4.7% delinquency rate seen in the fourth quarter of 2019, just ahead of the pandemics arrival.
The overall flow of debt moving into delinquency stood at 1.28% in the third quarter, compared to 0.94% in the third quarter of last year. The report said increases in credit card delinquency rates were most pronounced for those aged between 30 and 39.
The continued rise increditcarddelinquency rates is broad-based across area income and region, but particularly pronounced among millennials and those with auto loans or student loans, the economist noted.
In a blog posting that came with the report, New York Fed economists said the rise in credit woes is puzzling given the generally solid state of the economy.
Pinning an explanation on the delinquency rise is difficult and whether this is a consequence of shifts in lending, overextension, or deeper economic distress associated with higher borrowing costs and price pressures is an important topic for further research,” the post said.
The New York Fed report found that overall student loan debt rose by $30 billion to $1.6 trillion in the third quarter. The banks data on this type of borrowing arrived after the restart of student loan debt payments, which had been put on hold during the pandemic. The resumption of those payments has been a source of concern, butrecent New York Fed researchhas suggested only modest economic headwinds are likely to result.
Newly created mortgages totaled $386 billion in the third quarter, while the overall level of mortgage balances rose by $126 billion to $12.14 trillion as of the end of September.
The report said auto loan balances were up by $13 billion in the third quarter at $1.6 trillion, continuing the upward trajectory that has been in place since 2011.
Protesters have stormed the headquarters of two major newspapers in Bangladesh, amid widespread unrest following the death of a political activist.
A mob set fire to the offices of the Bengali-language Prothom Alo daily newspaper and the English-language Daily Star in the capital Dhaka, leaving journalists and other staff stuck inside.
Image: The Bengali-language Prothom Alo daily was one of the two newspapers that were targeted. Pic: AP.
One of the Daily Star’s journalists, Zyma Islam, wrote on Facebook: “I can’t breathe anymore. There’s too much smoke.”
Both dailies stopped updating their online editions after the attacks and did not publish broadsheets on Friday.
Troops were deployed to the Star building and firefighters had to rescue the journalists trapped inside. The blaze was brought under control early on Friday.
Image: The latest protests erupted a year after the July Revolution ousted PM Sheikh Hasina. Pic: PA.
Political activist Sharif Osman Hadi died in hospital late on Thursday, six days after the youth leader was shot while riding on a rickshaw in Dhaka.
Bangladesh’s interim government urged people on Friday to resist violence as police and paramilitary troops fanned out across the capital and other cities following the protests overnight. They have sparked concerns of fresh unrest ahead of national elections, which Mr Hadi had been due to stand in.
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He was a prominent activist in the political uprising last year that forced the then Prime Minister Sheikh Hasina to flee the country. Mr Hadi spent six days on life support in a hospital in Singapore before he succumbed to his injuries.
Image: Mr Hadi died a week after he was shot by a man on a motorbike. Pic: PA.
Hundreds of protesters took to the streets following news of Mr Hadi’s death on Thursday night, where they rallied at Shahbagh Square near the Dhaka University campus, according to media reports.
A group of demonstrators gathered outside the head office of the Muslim-majority country’s leading Bengali-language Prothom Alo daily, before vandalising the building and setting it on fire.
A few hundred yards away, another group of protesters pushed into the Daily Star offices and set fire to the building. The protesters are believed to have targeted the papers for their alleged links with India and closeness to Bangladesh‘s interim leader, Nobel Peace Prize laureate Muhammad Yunus.
Although calm had returned to much of the country on Friday morning, protesters carrying national flags and placards continued demonstrating at Shahbagh Square in Dhaka, chanting slogans and vowing not to return until justice was served.
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Last year’s mass uprising erupted from student protests against a quota system that awarded 30% of government jobs to relatives of veterans.
The July 2024 protest, which resulted in as many as 1,400 deaths according to the United Nations, was dubbed the first “Gen Z” revolution.
Bangladesh’s former prime minister Sheikh Hasina Wazed was forced to resign in August 2024 and fled to India. She was later sentenced to death in absentia.
Image: Sheikh Hasina was sentenced to death in absentia. Pic: AP
Dr Yunus was then sworn in as interim leader.
The country’s Islamists and other opponents of Ms Hasida have accused her government for being subservient to India.
Mr Hadi was a fierce critic of Ms Hasina and neighbouring India.
He had planned to run as an independent candidate in a constituency in Dhaka at the next national elections due to be held in February.
Authorities said they had identified the suspects in Mr Hadi’s shooting, and the assassin was also likely to have fled to India. Two men on a motorbike followed Hadi and one opened fire before they fled the scene.
Now, two moderators have sent a legal letter to TikTok laying out the terms of a potential legal case on grounds of unlawful detriment and automatic unfair dismissal.
Unlawful detriment is when an employer treats a worker unfairly because they used a protected employment right, for example, being a union representative, asking for flexible working or whistleblowing about the company.
“In June, TikTok said it was going to hire hundreds more content moderators, then two months later, they fired everyone,” said Stella Caram, head of legal at Foxglove, a non-profit supporting the moderators.
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“What changed? Workers exercised their legal right to try to form a trade union. This is obvious, blatant and unlawful union-busting,” she said.
Image: Moderators gathered to protest the redundancies in London
TikTok has been given one month to respond to the legal claim.
A TikTok spokesperson said: “We once again strongly reject this baseless claim.
“These changes were part of a wider global reorganisation, as we evolve our global operating model for Trust and Safety with the benefit of technological advancements to continue maximising safety for our users.”
As well as Foxglove, the two moderators launching the case are working with the United Tech & Allied Workers (UTAW), part of the Communication Workers’ Union, and law firm Leigh Day.
TikTok safety fears as hundreds of moderators leave company
“When it says AI can do our job of keeping people safe on TikTok, it knows that’s rubbish.
“Instead, they want to steal our jobs and send them to other countries where they can pay people less and treat them worse. The end result is TikTok becomes less safe for everyone.”
Internal documents seen by Sky News show that TikTok planned to keep its human moderators in London for at least the rest of 2025.
The documents lay out the increasing need for dedicated moderators because of the growing volume and complexity of moderation.
TikTok’s head of governance, Ali Law, also told MPs in February that “human moderators … have to use their nuance, skills and training” to be able to moderate hateful behaviour, misinformation and misleading information.
Image: Dame Chi Onwurah speaks at the House of Commons. File pic: Reuters
After a series of letters between TikTok and MPs, Dame Chi Onwurah, chair of the science and technology select committee, said she was “deeply” concerned about the cuts.
“There is a real risk to the lives of TikTok users,” she said.
“We set a high benchmark when it comes to rolling out new moderation technology.
“In particular, we make sure that we satisfy ourselves that the output of existing moderation processes is either matched or exceeded by anything that we’re doing on a new basis.
“We also make sure the changes are introduced on a gradual basis with human oversight so that if there isn’t a level of delivery in line with what we expect, we can address that.”
Australia is set to launch a national gun buyback scheme in response to the Bondi Beach terrorist shootings.
Fifteen people were killed and dozens wounded on Sunday at the Sydney beach after two gunmen opened fire at people celebrating Hanukkah, the Jewish festival of lights.
In the aftermath of the shooting, which authorities say appears to have been inspired by the Islamic State, patrols and policing across the country have been ramped up in an effort to prevent further violence.
Both the federal government and the state government of New South Wales, where Sydney is located, have pledged reforms, including tightening gun control laws, to prevent the threat of further violence in a nation with an estimated four million firearms.
Prime Minister Anthony Albanese has said the government would also strengthen hate laws. Announcing the gun buyback scheme, he cited the response to a previous Australian mass shooting – when a lone gunman killed 35 people in Tasmania’s Port Arthur in 1996.
“Australia’s gun laws were last substantially reformed in the wake of the Port Arthur tragedy,” Mr Albanese said on Friday. “The terrible events at Bondi show we need to get more guns off our streets.”
Image: Surfers and swimmers hold a tribute at Bondi Beach on 19 December. Pic: AP
On Friday, Australia’s Jewish community gathered at Bondi Beach for prayers, while hundreds of swimmers and surfers made a huge circle in the sea to honour the victims.
“Over the past two years, there’s been a lot of people who have been questioning whether we’re still welcome here in Australia because we saw people calling for our death on the streets on a weekly basis,” Rabbi Yosef Eichenblatt from Sydney’s Central Synagogue told ABC News, after attending the paddle-out tribute.
Funerals for the victims also continued today, with Boris and Sofia Gurman, a couple killed after attempting to stop one of the gunmen, being laid to rest.
‘All Jewish hearts are broken’
Meanwhile, Ahmed al Ahmed, the hero who wrestled a gun from one of the alleged gunmen, was handed a cheque for more than A$2.5m (£1.23m) from an online fundraiser.
Image: Floral tribute at Bondi Beach on 19 December. Pic: AP
One of the Bondi terrorists – Sajid Akram, 50, who was killed at the scene – held a firearm licence and had six guns registered.
If a man in Sydney’s suburbs needs “six high-powered rifles and is able to get them under existing licensing schemes, then there’s something wrong,” Mr Albanese said.
He said the government would work with states to target surplus, newly banned and illegal firearms, adding that the costs would be shared between the federal and state governments.
New South Wales Premier Chris Minns announced on Friday the state government would be recalled next week to enact the “toughest gun law reforms in the country”.
Gunmen ‘must never have had love’
Changes would include limiting firearms to four per person, tightening licensing requirements and restricting access to high-risk weapons and components.
Following the 1996 Port Arthur massacre, Australia secured the surrender of about 640,000 prohibited firearms nationwide. The total cost of compensation to owners was about A$304m (£150m).
Mr Albanese has faced pressure from critics who say his centre-left government has not done enough to deal with a surge in antisemitism since the start of the war in Gaza.
The government said it had consistently called out antisemitism over the last two years and passed legislation to criminalise hate speech.