US Consumer Spending Is Increasingly Driven by Richer Households

  • Spending by low earners jumped with pandemic aid, then slowed
  • Wealth effect of asset boom boosts top-end spending: Fed study
Photographer: Yuki Iwamura/Bloomberg
Lock
This article is for subscribers only.

The consumers powering US economic growth are increasingly those who are higher up the income ladder, and likely enjoying a wealth effect from asset-price gains, according to research by Federal Reserve economists.

Listen to the Here’s Why podcast on Apple, Spotify or anywhere you listen.