Pandemic Sparks Surge in American Household Wealth and Widens Income Inequality
American families experienced the largest jump in their wealth on record between 2019 and 2022, according to Federal Reserve data. Rising stock indexes, climbing home prices, and government stimulus contributed to a 37% increase in median net worth, the biggest jump since 1989. Median family income also increased by 3% during this period. While income gains were most pronounced for the affluent, the data showed that Americans across the board made financial progress, with savings rising and credit card balances falling. However, income and wealth gaps persist across racial groups, with Black and Hispanic families seeing the largest percentage gains in net worth during the pandemic period.