The Fox News Rundown Extra: Inflation, The Fed, And America's "Wealth Paradox"
Dec 28, 2025
Carol Roth, a former investment banker and author, delves into the complexities of inflation and the so-called 'wealth paradox.' She explains the K-shaped economy, where wealthier households remain insulated, while the working class struggles. Despite rising costs, consumer spending thrives, fueled by credit and affluent behavior. Roth provides practical financial advice, urging listeners to audit subscriptions and consult financial planners. She highlights the importance of informed decision-making to avoid common financial pitfalls and maximize retirement savings.
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Inflation's Uneven Impact
- Inflation affects people unevenly depending on asset ownership and income.
- Asset holders feel wealthier while middle and working class feel the drag of rising costs.
Wealth Paradox From Policy Choices
- Policy and Fed decisions produced a paradox of widespread tech access but rising personal stress.
- Easy access to luxuries didn't shield many from higher housing, education, and insurance costs.
Spending Masks Fragile Finances
- Holiday and retail spending is concentrated among wealthier households and masked weak personal balance sheets.
- Lower-income consumers often use credit or buy-now-pay-later to maintain appearances.