financetom
Economy
financetom
/
Economy
/
US inflation-adjusted income rose in 2023 while poverty rate edged up, Census data shows
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US inflation-adjusted income rose in 2023 while poverty rate edged up, Census data shows
Sep 10, 2024 11:45 PM

(Reuters) - U.S. inflation-adjusted household income increased but a measure of the poverty rate also edged up last year, the U.S. Census Bureau reported on Tuesday, offering a snapshot of how American households fared as the economy returned to pre-coronavirus pandemic growth levels, job growth boomed and inflation eased.

Real median household income rose to $80,610 in 2023, up 4.0% from 2022. The report also showed a main gauge of the nation's poverty rate, adjusted for government support such as food assistance and tax credits, rose to 12.9% from 12.4% in 2022. The so-called official poverty rate, meanwhile, fell to 11.1% from 11.5%.

The income and poverty data for 2023 comes two months before the U.S. presidential election. The shadow cast by a surge in inflation following the onset of the pandemic in early 2020, and how much that has squeezed pocketbooks of voters once government support programs designed to shore up household incomes expired, remains a key issue.

Last year saw the economy continue to post stronger-than-expected growth as it returned to its pre-pandemic path while the unemployment rate by January 2023 was 3.4%, lower than just before the health shock struck. While it ticked up to 3.7% by last December, that was still the lowest level in more than 50 years.

Employment growth averaged around 250,000 new nonfarm payroll jobs a month over the course of 2023, well above the 183,000 average over the decade preceding the pandemic.

The worst inflation in more than 40 years, meanwhile, continued to vex both households and the U.S. Federal Reserve. The central bank ratcheted up interest rates to more than 5% by the middle of last year and has kept them there since, in a bid to reduce the pace of price increases back to the normal annualized trend of around 2%.

Inflation, by the central bank's preferred measure had fallen from a high of 7.1% on an annual basis in June 2022 to 5.5% at the beginning of 2023, before more than halving to 2.6% by last December. Inflation currently remains at 2.5%.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Federal Reserve Watch for May 3: Bowman Says Upside Risks to Inflation Remain, Policy Not on Preset Course
Federal Reserve Watch for May 3: Bowman Says Upside Risks to Inflation Remain, Policy Not on Preset Course
May 3, 2024
02:41 PM EDT, 05/03/2024 (MT Newswires) -- Federal Reserve Governor Michelle Bowman (voter) said that while it appears that policy is restrictive enough to bring down inflation, she will continue to monitor incoming data and make decisions meeting-by-meeting. Bowman said that upside risks to inflation remain, and she did not rule out raising the federal funds rate further if that...
Biden vetoes bid to repeal US labor board rule on contract, franchise workers
Biden vetoes bid to repeal US labor board rule on contract, franchise workers
May 3, 2024
(Reuters) - President Joe Biden followed through on Friday on his vow to veto a Republican-backed measure that would have repealed a U.S. labor board rule treating companies as the employers of many of their contract and franchise workers and requiring them to bargain with those workers' unions. The proposal to repeal the National Labor Relations Board rule passed Congress...
Cinco De
Cinco De "Ut Oh": Mexico Investors Face "Dead Money" Scenario As Economy Slows, And Rate Cuts Less Likely
May 3, 2024
Banxico's survey of economists on May  2 has GDP falling to 2.26%, and inflation rising to 4.16%, meaning interest rate cuts likely on hold. 'De-Risking' from China seen as a long-term positive for Mexico. Mexico investors may be in for a volatile few weeks with the economy petering out even as inflation rises, casting serious doubts about interest rate cuts...
How the Federal Reserve impacts personal loans
How the Federal Reserve impacts personal loans
May 3, 2024
April 30-May 1 Fed meeting On May 1, 2024, the FOMC decided to hold steady on interest rates. The benchmark rate remains at 5.25-5.5 percent. Most personal loans have fixed rates, so current borrowers do not need to worry about their interest rates changing. Borrowers in the market for a personal loan should prepare for rising interest rates, but there...
Copyright 2023-2025 - www.financetom.com All Rights Reserved