Less than a year after they purchased their first home, Daphany Rose Sanchez and her family were on the roof, surrounded by water, waiting to be rescued.

Sanchez and her family, who had moved from public housing in Brooklyn to a single-family home on Staten Island, were among the thousands of people who faced the devastation of Hurricane Sandy, which caused over $50 billion in damage in the United States.

Increasingly volatile weather, including floods and extreme heat, threatens all of us. But low-income communities are especially vulnerable; many, like Sanchez and her family, find that the most affordable homes are often in areas with considerable environmental risks.

At an event earlier this year, the New York Fed’s Community Development team heard from Sanchez and others who are working to help low-income communities and communities of color adapt to the extremes that come with a changing climate. In particular, these advocates are focusing on flood...

Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw

The Federal Reserve Bank of New York’s Center for Microeconomic Data today released its Quarterly Report on Household Debt and Credit for the second quarter of 2021. It showed that overall household debt increased at a quick clip over the period, with a $322 billion increase in balances, boosted primarily by a 2.8 percent increase in mortgage balances, a 2.2 percent increase in credit card balances, and a 2.4 percent increase in auto balances. Mortgage balances in particular were boosted by a record $1.22 trillion in newly originated loans. Although some borrowers are originating new loans, struggling borrowers remain in forbearance programs, where they are pausing repayment on their debts and creating an additional upward pressure on outstanding mortgage balances.

Rajashri Chakrabarti, Jessica Lu, Joelle Scally, and Wilbert van der Klaauw

Forbearance on debt repayment was a key provision of the CARES Act, legislation intended to combat the widespread economic losses stemming from the COVID-19 pandemic. This pause on required payments for federally guaranteed mortgages and student loans has provided temporary relief to those affected by the COVID-19 pandemic, and servicers of nonfederal loans often provided forbearances or other relief on request as well. Here, using a special survey section fielded with the August 2020 Survey of Consumer Expectations, we aim to understand who benefitted from these provisions. Specifically, were there differences by age, race, income, and educational background? Did individuals who suffered job or income losses benefit differentially? Did renters receive more or less nonhousing debt relief than homeowners? Answers to these questions are not only key for understanding the economic recovery and...

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The ongoing series is created for middle school and high school students to spark curiosity and interest in economics as an area of study and a future career. Educators can use these activities to engage students with inquiry-based learning, help demystify economics, and encourage them to envision their own higher education journeys.

The ongoing series is created for middle school and high school students to spark curiosity and interest in economics as an area of study and a future career. Educators can use these activities to engage students with inquiry-based learning, help demystify economics, and encourage them to envision their own higher education journeys.