Reported about 21 hours ago
Fed Chair Jerome Powell stated that the surging stock market is currently bolstering consumer spending, crucial for the economy. However, he cautioned that if the market declines, spending could be adversely affected, particularly among lower-income individuals. This creates a precarious situation as consumer spending heavily relies on affluent individuals and the wealth effect from rising stock prices. Experts point out that the economy is becoming increasingly dependent on a small segment of wealthy consumers, raising concerns about stability if any supporting factors weaken.
Source: YAHOO