Low-Income Struggles Amid Economic Slowdown: A Red Flag?

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by bitkogan

Bloomberg has reported, citing a study by Propel Inc., that a growing number of low-income Americans are struggling to make ends meet—falling behind on rent and having difficulty affording food. This is happening even as inflation appears to be slowing down.

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These developments could indicate that the strategy of “helicopter money,” or pumping liquidity into the economy, is reaching its limits. The side effects, like inflation, are beginning to outweigh the benefits.

Given this development, the Federal Reserve may face mounting political obstacles as it considers using monetary easing to address market and broader economic issues.

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Might it be that the markets are prematurely celebrating the recent cooling labor market and economic slowdown?

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