WASHINGTON - Although US economic growth has been solid, with President Donald Trump's administration touting Wall Street records and tax relief, analysts warn that a "K-shaped economy" has taken hold.
This is a situation where wealthier households benefit from rising asset values, but median- and lower-income families increasingly struggle.
Nearly 60 percent of consumer spending in the third quarter last year came from the top 20 percent of income earners, according to Mark Zandi of Moody's Analytics.
In the greater Washington area, some 36 percent of households experienced food insecurity in the past year, according to the Capital Area Food Bank.
"We're seeing more individuals in what we would traditionally consider higher-income quartiles," said Radha Muthiah, the food bank's CEO.
That means a family of four making $90,000 to $120,000 a year could find themselves in need of "extra assistance in putting food on the table," she told AFP.
A key reason is "prolonged, sustained levels of inflation" after the Covid-19 pandemic, with wage growth not keeping pace, Muthiah said.
Food prices in December were 3.1 percent higher than a year ago, although Trump has said there is "virtually no inflation."
Beyond the US capital area, a New York Times/Siena poll in January flagged a widespread belief that a middle-class lifestyle is out of reach for most people.