{"id":273542,"date":"2025-11-10T05:15:09","date_gmt":"2025-11-10T05:15:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/273542\/"},"modified":"2025-11-10T05:15:09","modified_gmt":"2025-11-10T05:15:09","slug":"ny-fed-prez-warns-affordability-pressures-threaten-economy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/273542\/","title":{"rendered":"NY Fed Prez Warns Affordability Pressures Threaten Economy"},"content":{"rendered":"

A leading Federal Reserve<\/a> official warns that problems of poorer Americans could threaten economic growth.<\/p>\n

In an interview<\/a> Saturday (Nov. 8) with the Financial Times (FT), New York Fed President John Williams<\/a> says data and conversations with community leaders spotlighted the affordability crisis facing many poorer households.<\/p>\n

\u201cThere is quite a bit of evidence\u2009\u2026 that lower and moderate-income households are facing some constraints from an affordability point of view,\u201d Williams told the FT. \u201cFrom the cost of living, the housing costs and basically many families living month to month.\u201d<\/p>\n

At the same time, wealthier Americans were enjoying the benefits of a\u00a0 stock market \u201cbooming near all-time highs.\u201d<\/p>\n

With the U.S. labor market<\/a> cooling, Williams pointed to what he called the \u201cdisaggregated\u201d behavior of American households as a possible factor in determining whether or not he thinks the Fed should reduce borrowing costs next month.<\/p>\n

The FT noted that although U.S. growth has been sturdier than many economists had forecast and inflation remained above the Fed\u2019s 2% target, the struggles facing more vulnerable households because of the high cost of living could send the economy off course.<\/p>\n

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\u201cSomething could happen that cuts into confidence, or consumer spending growth that we\u2019re seeing at the aggregate level may not be as robust, if you will, as it would be otherwise, given that a lot of folks are really, again, living month to month<\/a>,\u201d said Williams, who also serves as vice-chair of the Federal Open Market Committee.<\/p>\n

Fed officials, the report added, have begun to focus more on how a jobs market which Williams described as lacking \u201ca lot of strength and momentum\u201d could impact the economic fortunes of everyday Americans.<\/p>\n

As covered here last week, the latest corporate earnings season has illustrated some of the pressures facing lower-income Americans<\/a>.<\/p>\n

For example, Chipotle<\/a>\u2019s recent earnings call included comments from CEO Scott Boatwright<\/a>, who touched on reduced visits from lower-income diners, echoing comments from other quick-service and casual dining brands.<\/p>\n

\u201cThose remarks align with PYMNTS Intelligence data showing that these lower-income households, which make up the core of the Labor Economy, face persistent financial fragility,\u201d PYMNTS wrote. \u201cAccording to the Wage to Wallet Index<\/a> for October 2025, roughly 60 million U.S. workers earning $25 an hour or less, generally under $50,000 a year, account for 36.5% of all employment but only 15.1% of total consumer spending, or about $1.7 trillion annually.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"A leading Federal Reserve official warns that problems of poorer Americans could threaten economic growth. In an interview…\n","protected":false},"author":2,"featured_media":273543,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[17755,45,49,48,46,2071,135,9316,29022,44,7995,7996],"class_list":{"0":"post-273542","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-affordability","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-economy","13":"tag-federal-reserve","14":"tag-inflation","15":"tag-interest-rates","16":"tag-labor-market","17":"tag-news","18":"tag-pymnts-news","19":"tag-whats-hot"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/273542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=273542"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/273542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/273543"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=273542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=273542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=273542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}