Why Wage Growth Hasnt Boosted Consumer Spending as Expected

In this episode of The Macro Memo, Lucas and Luna unpack a puzzle at the heart of the current economy: average hourly earnings are up to $37.60, yet consumer spending is showing cracks. They explore a new Fed paper that suggests higher wages are being absorbed by debt service costs, with credit card balances rising and a World Cup boost for bars fading fast. The hosts drill into why the wage-spending link may be broken, what import price data from China reveals about margins, and whether the Fed's rate path accounts for a consumer that's becoming more cautious. A must-listen for anyone trying to read the macro tea leaves mid-2026. #WageGrowth #ConsumerSpending #FederalReserve #MacroEconomics #FedPolicy #Inflation #ImportPrices #China #WorldCup #LaborMarket #DebtService #CreditCardDebt #RealWages #JOLTS #FedFundsRate #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo