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Nearly 40 percent of Americans would struggle to cover an unexpected $400 expense, according to a new report by the Federal Reserve — a stark reminder of many people's financial insecurity even amid solid economic growth. "Relatively small, unexpected expenses, such as a car repair or replacing a broken appliance, can be a hardship for many families without adequate savings," the researchers found.
With political campaigns for the 2020 election heating up, such figures provide fodder for candidates who argue the economy is hobbled by searing inequality and vulnerable to a downturn after 10 years of growth since the last recession. The data also highlight what is often a disconnect between "headline" economic numbers, such as unemployment and gross domestic product, that pundits and politicians often trumpet and the more complex reality facing millions of Americans.
With political campaigns for the 2020 election heating up, such figures provide fodder for candidates who argue the economy is hobbled by searing inequality and vulnerable to a downturn after 10 years of growth since the last recession. The data also highlight what is often a disconnect between "headline" economic numbers, such as unemployment and gross domestic product, that pundits and politicians often trumpet and the more complex reality facing millions of Americans.
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