Fed: Financial pressure is growing despite income and wealth growth in the US

The US Federal Reserve's (Fed) consumer financial situation research for the 2022-2025 period revealed that most households in the US experienced an increase in income and wealth after the pandemic, and these increases were especially concentrated in low-income segments. However, it was announced that the rate of households experiencing financial difficulties increased due to the increasing debt burden during the high inflation period.

The Fed also noted that income inequality has decreased over the past three years, but that change has done little to reduce ongoing wealth inequalities.

Low-income families saw modest income growth in the three years through 2025. The incomes of those at the top of the income distribution, who derive most of their income from more variable elements such as capital gains and businesses, have decreased.

According to the triennial study published by the Fed on Friday, it was found that "in an environment of moderate economic growth and high inflation, while most families are experiencing modest increases in income and net worth, an increasingly larger segment is experiencing financial distress."

In the research, it was stated that the share of families whose debt payments to income ratio is 40 percent or more increased from 6.5 percent to 8.6 percent. This rate has reached the highest level recorded since 2013.

During the period when the labor market, which was strong during the pandemic period, was replaced by a limited increase in the unemployment rate, the inflation-adjusted median family income increased by 7 percent and reached 82 thousand 200 dollars.

Households in the lower segments of the income distribution achieved the highest income increases during the period in question. This development coincided with the conditions of the post-pandemic period, when there was a labor shortage, especially in the service sector, and employers turned to wage increases and bonuses in order to recruit employees and retain their existing employees.

The inflation-adjusted median net worth of Americans increased by 2 percent to 215 thousand 900 dollars, and the average net wealth increased by 7 percent to 1 million 241 thousand 500 dollars.

Disproportionate average increases underscore wealth inequality. The top 10 percent of people with income have, on average, 56 times more wealth than the 20 percent of people with the lowest income.

While the home ownership rate in the USA remained unchanged at approximately 66 percent, the rate of those investing in the stock market decreased from 58 percent in 2022 to 56 percent in 2025.

The research was conducted on a sample of 4 thousand 367 households across the country. Most of the data was collected between April and December 2025.

The research revealed that although there was a limited decrease in income inequality and an increase in the general level of wealth, there was a decrease in the net wealth of black families and low-income segments.

On the other hand, non-Hispanic black families saw a significant 25 percent decrease in median net worth.

The Fed pointed out that the decline in question reversed the upward trend that had been continuing since 2013.