Economics
White Women Cut Spending the Most as Fed Hikes Rates, Study Shows
- Fed has increased rates 225 basis points to slow price growth
- Fed watches policy effects on gender, race groups more closely
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Monetary policy has a more significant impact on spending of US households headed by White women than on those led by White men or Black men and women, the Federal Reserve Bank of San Francisco said.
White women with a mortgage decreased their spending twice as much as White households overall in the three years after an unexpected rate hike, Aina Puig, a research scholar with the San Francisco Fed, said in an economic letter published Monday. Changes in spending for the other cohorts were minimal, which could be explained by differences in wealth, occupation and economic wellbeing.