The median income of US households has dropped 4.1% since 2009, the year the recession ended. Median income adjusted for inflation was $50,054 in 2011, down from $52,195 in 2009, annual data from the Census Bureau shows.
There are other gloomy signs about the health of the US economy in general. US GDP grew 2% in the first quarter of 2012, then slipped to 1.7% in the second quarter. Forecasts suggest this will fall again to 1.5% in Q3.
The Federal Reserve announced yesterday an open-ended third round of its QE programme. Monthly $40bn purchases of mortgage-backed securities will be committed to kickstart the economy again; meanwhile the near-zero interest rate will remain in tact until mid-2015. But will it be enough?