Delinquency rates on credit cards and auto loans spiked to their highest since the Great Recession, according to a New York Fed report out Tuesday.

Why it matters: The striking resilience of the American consumer is a key reason why the economy has avoided a recession. Emerging stress on household balance sheets is one of the few worrying signs for a U.S. economy that has continued to shrug off threats.

• The upswing in delinquency rates are an indication that the Federal Reserve’s aggressive interest rate hikes are hitting consumers, who are struggling with the higher cost of borrowing.

What they’re saying: “Credit card and auto loan transitions into delinquency are still rising above pre-pandemic levels,” Wilbert van der Klaauw, an economic research adviser at the New York Fed, said in a press release.

• “This signals increased financial stress, especially among younger and lower-income households.”