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Chart of the Week 3-15-2023

| March 15, 2023

Chart of the Week: An Outcome is Income

In our view, US aggregate real incomes will meaningfully rise by 3.75% in 2023, driven by continued job gains, positive real wage growth, above-normal cost of living adjustments, normalizing effective tax rates, and higher interest income. That said, these factors skew toward benefitting higher-income households that have a lower propensity to spend, suggesting the translation from real income growth to real spending growth may be more muted than normal.