Fed survey lays bare U.S. economic divide

25-May (Reuters) — Almost half of American families say they would struggle to pay for emergency expenses and those with a high school degree or less are most likely to say their well-being has declined, according to a Federal Reserve survey released on Wednesday.

The annual survey, in its third year, takes the pulse on the financial situation of U.S. families, which has been a key issue ahead of this year’s presidential election.

…A large swathe of Americans struggling with stagnant wages and fewer middle-class jobs have fueled the presidential campaigns of presumptive Republican nominee Donald Trump and Democratic candidate Bernie Sanders.

“Despite some signs of improvement overall, 46 percent say they would struggle to meet emergency expenses of $400, and 22 percent of workers say they are juggling two or more jobs,” said Federal Reserve Board Governor Lael Brainard in a statement.

Only 23 percent of respondents said they expected their income to be higher in the year after the survey, down from 29 percent at the time of the prior survey.

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PG View: Despite any optimisms professed by policymakers, a large swath of America continues to struggle. Higher rates are certainly not going to improve their situations.