Reported about 1 month ago
Despite high inflation, wealthier Americans have been increasingly driving retail spending due to significant gains in income, home equity, and stock market wealth, which has shifted consumer spending dynamics since the pandemic. Research from the Federal Reserve indicates that upper- and middle-income households are responsible for most of the increased spending, while lower-income consumers face challenges due to rising costs for essentials. This divergence explains the robust performance of the U.S. economy amidst rising interest rates and inflation.
Source: YAHOO