US wealth gap widens as AI investment boom fuels inflation

Federal Reserve data reveals that between the end of the Biden administration and mid-2026, the top 1% of households captured a larger share of the national wealth pie than any other cohort. While total household wealth grew by $26 trillion—a 16.5% increase across the board—the benefits for the bottom 99% were significantly more modest. This concentration of gains among the elite has sparked intense debate among economists regarding the long-term sustainability of an economy where wealth accumulation is increasingly skewed.

Despite this disparity, consumer spending has proven surprisingly resilient. Households are maintaining their purchasing habits, though much of this activity is being swallowed by persistent inflation rather than genuine growth in consumption. While nominal spending is climbing faster than pre-pandemic rates, real spending adjusted for inflation remains stagnant. This grind is particularly visible in the cost of household staples like ground beef and gasoline, which have surged even as wage growth struggles to keep pace.

Housing remains the most stubborn friction point for the average family. With bond yields rising, mortgage rates have climbed more than a full percentage point over the past year, locking many out of home ownership. This affordability crisis persists despite campaign promises to lower price levels. As import tariffs and energy costs from the Iran conflict continue to circulate through the economy, the cumulative effect is a public mood increasingly sour toward the Trump administration, as voters weigh the benefits of a booming tech sector against the eroding purchasing power of their own paychecks.