Fed paints worrisome economic picture as study shows increasing gap between rich and poor [View all]

Soaring gas prices have put the brakes on the spending habits of millions of Americans, hitting their wallets hard and fueling America’s persistent economic inflation-driven K-shaped divide, according to a new study by Federal Reserve economists.

The energy price shock from the Iran war has caused what the study of March gas consumption shows is the highest gap to date in U.S. gas spending, severely curbing the purchasing power of lower-income households at the pump.

And that gap is expected to grow with higher inflation spikes as the supply chain continues to be restrained in the dispute over the Strait of Hormuth.

The study by the New York Fed looked at gas consumption during March 2026, the first full month of the war.

https://www.msn.com/en-us/money/markets/fed-paints-worrisome-economic-picture-as-study-shows-increasing-gap-between-rich-and-poor/ar-AA22z4lb