Food insecurity and financial strain are rising across large parts of the U.S. economy even as broader economic conditions remain relatively stable, according to new research published Wednesday by the Federal Reserve Bank of New York.
The report found that lower-income households, lower-educated households and families with children are experiencing increasing levels of food insecurity and economic stress.
The New York Fed described the trend as part of a “K-shaped economy,” where higher-income households continue benefiting from rising stock prices, home equity gains and wealth accumulation while many lower-income Americans struggle with affordability pressures.
The survey showed more households reporting trouble affording food, relying on SNAP benefits, receiving food donations and dipping into savings to cover daily expenses.
Consumer Pessimism
The report also found that households facing food insecurity have become increasingly pessimistic about their financial future and job prospects.
Among households reporting skipped meals or food shortages, the net share expecting to be financially better off a year from now fell from -10.2 in 2020 to -32.5 in February 2026.
The average probability of finding a new job after losing employment also declined more sharply among households receiving food assistance or SNAP benefits.
The New York Fed noted that overall consumer sentiment has fallen near levels seen during the Great Recession and the pandemic despite low unemployment and resilient consumer spending.
Affordability Pressures
The findings come as affordability concerns continue rising across the U.S. economy.
Earlier this month, the United Nations’ Food and Agriculture Organization said its Food Price Index rose for a third consecutive month in April, driven by higher vegetable oil, cereal and meat prices.
Market commentator The Kobeissi Letter also recently warned that fertilizer prices have surged 44% since the start of the Iran conflict, increasing the risk of another wave of global food inflation.
The report also comes as several states begin implementing stricter SNAP work requirements following changes tied to the One Big Beautiful Bill Act.
Former White House communications director Anthony Scaramucci additionally warned this month that many Americans are increasingly cutting back on essentials, including healthcare and prescriptions, due to rising living costs and housing affordability pressures.
Wealth Gap
The report adds to broader concerns about the widening divide between higher-income and lower-income households.
Earlier this month, Sen. Bernie Sanders (I-Vt.) warned of a “massive wealth inequality” crisis after billionaire wealth increased by roughly $2.5 trillion over the past year.
The New York Fed noted that higher-income households have benefited from rising financial asset values and home equity gains, while lower-income households continue facing pressure from inflation, debt burdens and elevated living costs.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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