Food Insecurity Deepens Consumer Pessimism in a Split Economy

A New York Fed analysis using the Survey of Consumer Expectations finds rising food insecurity since 2020—disproportionately among lower‑income, less‑educated households and those with children—alongside a sharp drop in consumer optimism and job-finding prospects. Despite solid macro indicators, sentiment remains weak, reflecting a K‑shaped economy where the bottom half faces renewed financial strain. The study links higher insecurity to deteriorating outlooks, while acknowledging that inflation, cost of living, and policy changes (e.g., SNAP) also drive pessimism and that multiple factors influence consumer expectations even among those not reporting food insecurity.