New York Fed Ties 14% U.S. Food Insecurity Rate to K-Shaped Economy
Updated
Updated · CNBC · May 27
New York Fed Ties 14% U.S. Food Insecurity Rate to K-Shaped Economy
4 articles · Updated · CNBC · May 27
Nearly 14% of U.S. households were food insecure in 2024, and New York Fed researchers said that strain is concentrated on the lower prong of a K-shaped economy.
Lower- and middle-income households have been hit hardest because more of their budgets go to housing, food and utilities—categories that have surged since the pandemic—forcing cutbacks on groceries.
SNAP reductions, the expiration of pandemic-era aid and tighter work requirements in Trump's bill have compounded the pressure, while gasoline at $4.46 a gallon is adding another hit.
The Fed said that divide helps explain why consumer sentiment has kept deteriorating even as the broader economy, stock prices and home values have continued to rise.
As household debt hits a 15-year high amid a stock boom, is the US economy dangerously splitting in two?
With the government halting food insecurity data, how will the nation address a crisis it will no longer officially measure?
As aid systems fail to meet rising needs, what innovations can bridge the gap between available benefits and hungry families?
Hunger on the Rise: The Alarming Surge in U.S. Food Insecurity (2022–2026) and Its Drivers, Disparities, and Policy Responses
Overview
Food insecurity in the U.S. has risen sharply, with the rate jumping from 10.4% in 2021 to 13.5% in 2022—the largest one-year increase since 2008 and the highest since 2014. This surge means over 44 million Americans, or about 1 in 7, struggled to get enough food. The situation is made worse by the Administration’s decision to stop collecting food insecurity data, making it harder to track the impact of recent policy changes. Notably, a major Republican bill in July 2025 cut food assistance programs, further threatening access to food for millions.