Four in 10 Americans can't afford a $400 emergency without going into debt.
That contradicts the predominant view among Fed officials that the economy is at "full employment."
The Fed has been focusing on the bright side of economic conditions.
They're doing so in order to justify ongoing interest rate increases.
However, the Fed's own Community Advisory Council admits there's a downside to rate hikes.
Namely, they result in "higher unemployment levels and preservation of racial inequities in employment."