politics
K-shaped economy is showing up at the gas pump: NY Fed
Key takeaways
- Low-income households earning less than $40,000 a year cut gas consumption by 7 percent in March but still spent 12 percent more due to higher prices, according to new research from the Federal Reserve Bank of New York.
- Meanwhile, high-income households earning more than $125,000 cut gas consumption by just 1 percent — essentially unchanged — while spending 19 percent more.
- The findings offer another example of the so-called K-shaped economy, a growing divide where higher-income households continue spending while lower-income households are forced to cut back.
Why this matters: political developments that affect policy direction and public trust.
Low-income households earning less than $40,000 a year cut gas consumption by 7 percent in March but still spent 12 percent more due to higher prices, according to new research from the Federal Reserve Bank of New York.
Meanwhile, high-income households earning more than $125,000 cut gas consumption by just 1 percent — essentially unchanged — while spending 19 percent more.
The findings offer another example of the so-called K-shaped economy, a growing divide where higher-income households continue spending while lower-income households are forced to cut back.
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