Food insecurity worsens in a K-shaped US economy, New York Fed says
Research by the Federal Reserve Bank of New York finds food insecurity rising, with lower-income households bearing the brunt. The bank says the strain helps explain why many Americans feel worse off even as headline growth holds up.
A growing share of Americans are struggling to afford enough food, and the Federal Reserve Bank of New York says that strain helps explain why many people feel worse off even as headline growth holds up. Researchers found that reported food insecurity has risen, with lower-income households bearing the brunt.
The bank's economists describe a 'K-shaped' economy in which wealthier consumers keep spending while those at the bottom fall further behind. Higher prices for everyday essentials, they say, weigh heavily on how families assess their own finances, regardless of broader market gains.
The findings add to a debate over how evenly the recovery is being felt. Economists will watch coming inflation readings and the path of grocery prices to judge whether the squeeze on poorer households eases or deepens in the months ahead.
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