In short, renters are in dire straits financially, while homeowners are "continuing to reap the rewards" of cheap pandemic money that left renters with nothing but inflation.

This is "complicating" the Fed's crystal ball as homeowners continue to splurge on everything from travel to eating out, "propping up prices with their discretionary spending power."

Of course, the Fed's money printers are what are propping up prices. But the robust homeowner spending means they're not seeing the distress.

The Rich Get Richer, the Poor Get Inflation

I've mentioned in a recent article how the Fed money printer works by injecting new money into asset markets. Which leaves the rich richer and the poor coping with inflation.

That process goes on turbo when they crank up the money printers, which they did during the pandemic to the tune of $7 trillion fresh dollars — one in three.

Hence the media's favorite economic theme these days: Why Americans can't see the glory of Bidenomics. After all, if you're a journalist at the New York Times, or an economics professor at Harvard, everybody at your dinner parties owns a home. They own stocks. They're doing great, regaling one another about their investing acumen.

Alas, the 90% aren't at those dinner parties to regale. They can only speak in ballot boxes.

Heaven at the Top, Hell at the Bottom

In raw numbers, the Fed report finds that nearly 1 in 5 renters fell behind on their rent in the past year, while rents have soared 20% since the pandemic — coming to nearly $400 for the average renter.

Renters are more likely to not be able to pay the electric, water, or gas bill in the past month, and they report much higher rates of financial anxiety.

This all might rankle when CNN lectures them about how amazing the economy is.