Goin’ Down! Fed Reports That Bottom 80% Of US Households Are Poorer Since Covid And Bidenomics (UMich Consumer Expectations Of Inflation Jumps!)

The bottom 80% of Americans are going down under Bidenomics.

A brand new study from the Federal Reserve has discovered that the bottom 80 percent have “lower bank deposits and other liquid assets compared to their status in March 2020”…

As of June, the bottom 80% of households by income, when adjusted for inflation, had lower bank deposits and other liquid assets compared to their status in March 2020. The decline marks a significant shift from the initial phases of the pandemic, where various factors, including government financial support and restricted spending opportunities during lockdowns, led to an accumulation of excess savings.

In other words, the vast majority of all Americans have been getting poorer.

The Federal Reserve, along with Bloomberg calculations, identified a rapid drawdown of these excess savings, particularly stark among the lower-income groups. While all income groups have experienced a decrease in real-term cash balances from the peak in 2021, the disparity is noteworthy. The wealthiest one-fifth of households still have cash savings approximately 8% above their pre-COVID levels. In stark contrast, the poorest two-fifths have witnessed an 8% decrease, and the next 40% — broadly representing the middle class — have seen their cash savings fall below pre-pandemic levels.

Even checkable deposits and currency held by the top 1% (call it the Kerry Class after multi-millionaire and Statist parasite John Kerry, Biden’s climate “envoy”) are soaring while the bottom 50% are seeing only a tepid rise.

Meanwhile, UMich inflation expectations rose even further intra-month, jumping from 4.4% to 4.5% final (for 1Y inflation outlook) and from 3.1 to 3.2% final (for 5-10Y outlook).