The stock market is driving the economy in one major way
The wealth effect of higher equity prices has enabled U.S. consumers to continue spending even when changes in disposable income suggested recessions might be possible
The wealth effect of higher equity prices has enabled U.S. consumers to continue spending even when changes in disposable income suggested recessions might be possible
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Why it matters
The report highlights the wealth effect of rising equity prices supporting consumer spending, which is a notable economic observation but does not directly alter monetary policy or credit market structure.
Sources
MarketWatch
The stock market is driving the economy in one major way
The wealth effect of higher equity prices has enabled U.S. consumers to continue spending even when changes in disposable income suggested recessions might be possible