New York Fed confirms enduring K-shaped split in U.S. spending
TL;DR
The New York Fed finds real retail spending has diverged by income since 2023, with high-income households driving most growth thanks to asset gains while low- and middle-income groups lag; spending has recently turned negative across all groups, underscoring vulnerability to a potential market downturn.
Topics:businesseconomy#consumer-spending#economy#income-inequality#k-shaped-economy#new-york-fed#wealth-effects
- K-shaped economy is real, per New York Fed research Axios
- The 'K-shaped' spending trend is real — but it's been here since 2023: New York Fed Yahoo Finance
- Explaining the K-Shaped Economy: What’s Behind the Divide? Liberty Street Economics
- Two harsh realities are keeping lower earners stuck while the wealthy pull ahead Business Insider
- Where does the K-shaped economy stand in 2026? CFO Brew
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