The Federal Reserve raised interest rates by 25 basis points to a target range of 3.75% to 4%, with the 10-year Treasury yield exceeding 5%. The top 20% of U.S. households now account for approximately 60% of consumer spending, while the middle-class wage-price margin has collapsed by 115% from its prewar baseline. Labor’s share of nonfarm business output fell to a record low of 52.8% in the second quarter. U.S. household wealth surged by $12.8 trillion in the second quarter, including $10.7 trillion in equity gains concentrated among the wealthiest 10% who hold over 87% of all equities. Buy now, pay later financing reached nearly $160 billion last year, with the share of users financing groceries doubling in two years.
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