Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.AllNewsSportCultureLifestyleA new Federal Reserve report, known as the "Beige Book," indicates that middle-class Americans are struggling with affordability, leading them to prioritize necessities and "squeeze more life out of every dollar." The report highlights increased credit card use among consumers, suggesting potential cash flow issues, while low-income Americans face even greater financial strain. In contrast, wealthier households are noted as remaining resilient and less affected by rising prices, contributing to a "K-shaped economy" where economic recovery disproportionately benefits higher earners. The Federal Reserve attributes the current affordability crisis primarily to the "war in Iran," which is driving up energy costs and subsequently impacting shipping, groceries, and other goods. This economic trend is characterized by reduced retail visits and a shift in consumer spending towards essential items, with some consumers potentially using tax refunds to pay down existing debt. In fullMiddle-class Americans are ‘squeezing more life out of every dollar’ as credit card use increases and retail visits slow, Fed saysThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Latest Fed report reveals Americans are trying to squeeze ‘life out of every dollar’
Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.AllNewsSportCultureLifestyleA new Federal Reserve report, known as the "Beige Book," indicates that middle-class Americans are struggling with affordability, leading them to prioritize necessities and "squeeze more life out of every dollar." The report highlights increased credit card use among consumers, suggesting potential cash flow issues, while low-income Americans face even greater financial strain. In contrast, wealthier households are noted as remaining resilient and less affected by rising prices, contributing to a "K-shaped economy" where economic recovery disproportionately benefits higher earners. The Federal Reserve attributes the current affordability crisis primarily to the "war in Iran," which is driving up energy costs and subsequently impacting shipping, groceries, and other goods. This economic trend is characterized by reduced retail visits and a shift in consumer spending towards essential items, with some consumers potentially using tax refunds to pay down existing debt. In fullMiddle-class Americans are ‘squeezing more life out of every dollar’ as credit card use increases and retail visits slow, Fed saysThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
