Wealthy Americans Sustain U.S. Retail Growth Amid High Costs

Higher-income consumers are driving retail spending, bolstering the economy despite persistent inflationary pressures on lower-income households.

Federal Reserve research indicates that affluent Americans have increased their retail spending, contributing significantly to economic growth.
The U.S. economy expanded at an estimated 3.4% rate in the third quarter, supported by strong retail and restaurant sales.
High home equity and stock market gains have fortified wealthier households, allowing them to spend more freely.
Lower-income consumers continue to face financial strain, with increased spending on necessities and reduced discretionary spending.
Recent interest rate cuts by the Federal Reserve may ease borrowing costs, potentially benefiting middle- and lower-income earners.