U.S. households’ net worth surged during pandemic, Fed Reserve survey finds
U.S. households’ net worth surged during pandemic, Fed Reserve survey finds
The Federal Reserve is out with a new, definitive look at how our finances fared during the pandemic. The good news is that net worth went up, even for low-income families.
U.S. households’ median net worth soared 37% from 2019 to 2022 after adjusting for inflation, according to the Federal Reserve’s new Survey of Consumer Finances. The survey also found that Black families’ median net worth jumped 60%.
Things like pandemic relief checks and extended unemployment helped fatten up bank accounts, said Tulane University economics professor Gary Hoover.
“Those pandemic relief efforts were absolutely more geared toward the lower end of the wage distribution where they would have had the biggest impact,” he said.
The Fed survey says wages increased the most for higher-paid workers, widening inequality. Last year, average earnings didn’t keep up with inflation. But wages have actually outpaced price increases over the past seven months, per Economic Policy Institute chief economist Josh Bivens.
“I think we’re set for some pretty good years for income growth especially for sort of the bottom half,” he said.
If wages can keep outpacing inflation, Bivens said there could be some incremental improvement in inequality.
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