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Fed Predicts Inflation Dip as Oil Falls, Spending Splits Rich-Poor

7/8/2026

Summary

Story summary

Federal Reserve (Fed) Chair Kevin Warsh said inflation is expected to fall as oil prices decline amid Iran war negotiations.
Bank of America researchers found the top 10 percent spend as much as the bottom 40 percent and their discretionary spending matches the bottom 70 percent combined.
Despite consumer confidence slipping to near all-time lows, spending accelerated in May, showing a “K-shape” economy where wealthier households keep spending while lower-income households pull back.

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Story summary

Federal Reserve (Fed) Chair Kevin Warsh said inflation is expected to fall as oil prices decline amid Iran war negotiations.
Bank of America researchers found the top 10 percent spend as much as the bottom 40 percent and their discretionary spending matches the bottom 70 percent combined.
Despite consumer confidence slipping to near all-time lows, spending accelerated in May, showing a “K-shape” economy where wealthier households keep spending while lower-income households pull back.