The Federal Reserve Bank of New York has identified a concerning rise in food insecurity among America’s less affluent families, a trend that may explain the growing pessimism among consumers despite generally positive economic data. This increase is particularly pronounced among lower-educated, lower-income households, and those with young children, according to a recent blog post by the bank’s economists.

Between October 2025 and February 2026, the New York Fed surveyed Americans on their financial struggles, including the need to use savings for expenses, difficulties in finding enough food, skipping meals, or relying on food assistance programs. The findings revealed a significant uptick in food-related challenges across various demographics, with nonwhite, lower-income, and lower-educated households, as well as families with children, being most affected.

The report suggests that these food-related issues are contributing to a decline in consumer sentiment among lower-income households, even as broader economic indicators remain strong. This divergence is part of a larger trend described as a ‘K-shaped economy,’ where the economic fortunes of the wealthy and less affluent continue to diverge.

Divergent Economic Prospects

The New York Fed’s findings are part of a series of reports highlighting the disparities in economic recovery. While wealthier Americans benefit from rising asset values, a stable job market, and lower borrowing costs, many others face ongoing financial stress due to high living costs, persistent inflation, and high interest rates. This financial strain is evident in increased delinquency rates for credit cards and loans.

The report also notes that inflation pressures have intensified, driven in part by President Donald Trump’s import tax increases and geopolitical tensions in the Middle East, which have caused energy price shocks. These factors, combined with a shift in the job market to a low-hire, low-fire scenario, have further stressed households.

As the nation grapples with these challenges, the report underscores the importance of addressing the needs of lower-income families to ensure a more equitable economic recovery.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.