Federal Reserve Bank of New York Reports Wealthy Americans Increase Spending Amidst Economic Inequality
The Federal Reserve Bank of New York has released new data indicating that higher-income Americans and those with college degrees have increased their spending more rapidly over the past three years compared to other consumers. This trend highlights growing economic inequality, as lower-income and rural households have faced higher inflation rates. The data, which focuses on goods excluding autos, shows that households earning $125,000 or more have increased their spending by 2.3% since 2023, while middle-income households have increased by 1.6%, and those earning below $40,000 have only increased by 0.9%. The report supports the concept of a 'K-shaped' economy, where upper-income Americans drive a disproportionate share of consumption, while lower-income households see fewer gains. 
