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Affluent Americans are driving US economy and likely delaying need for Fed rate cuts

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Older Americans are fueling a sustained boost to the U.S. economy. Benefiting from outsize gains in the stock and housing markets over the past several years, they are accounting for a larger share of consumer spending — the principal driver of economic growth — than ever before. And much of their spending is going toward higher-priced services like travel, health care and entertainment, thereby putting further upward pressure on those prices — and on inflation. Such spending is relatively immune to the Federal Reserve’s push to slow growth and tame inflation through higher borrowing rates, because it rarely requires borrowing.

Article Topic Follows: AP National

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