NY Fed links consumer sentiment drop to K-shaped economy

Consumer sentiment has fallen to levels comparable to the Great Recession and the pandemic, according to researchers at the Federal Reserve Bank of New York. This decline is attributed to significant economic insecurity and financial strain experienced by lower-income Americans, reflecting a 'K-shaped' economic recovery where different income groups are affected disproportionately. The findings highlight growing disparities and the severe impact of economic pressures on a substantial portion of the population. This trend suggests underlying economic weaknesses that are eroding consumer confidence and potentially impacting broader economic stability.