Wells Fargo CEO Says It's not Just Affluent Who are Spending

Dow Jones08-05

1540 ET - Wells Fargo's CEO echoes Treasury Secretary Bessent's proclamation on CNBC earlier that "the K-shaped economy is over." Charlie Scharf says the data supports Bessent's comment. He says credit card spending is up 10% and it's not just affluent customers--with mass market customers driving a third of the spending. On the debit card side, Scharf says spending is up 7% and about 70% of the increase is from the mass customer. "So everyone is spending more, delinquencies are down, the savings rate is up," he says on CNBC. Still, Scharf says people seem concerned as seen in consumer confidence data, but he cites tax refunds and the job market as positives and the fact that average direct-deposit paychecks are rising faster than inflation for his customers.

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