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High-Income Consumers Are Living Larger, While Others Cut Protein To Make Ends Meet, New Fed Report Finds
Investopedia • • business
Key Points:
- The Federal Reserve's Beige Book reveals that low- and middle-income Americans are cutting back on expenses such as travel, protein consumption, and are switching to generic products due to rising costs and stagnant wages.
- The report highlights a "K-shaped" economic recovery, where high-income individuals continue to spend on luxury goods and experiences, while lower-income groups face financial strain and reduced spending.
- Economic activity improved slightly in December, but hiring remained slow and inflation persisted, disproportionately impacting moderate- and low-income consumers.
- Retailers serving wealthier customers saw increased sales, whereas those catering to middle- and lower-income consumers experienced significant declines and price sensitivity.
- Specific challenges include rising health insurance premiums for low- and moderate-income seniors and
