Rich Getting Richer, Poor Getting Poorer in New Federal Reserve Wealth Data
The rich are getting richer, and the poor are getting poorer, per the Federal Reserve.
The central bank's latest Survey of Consumer Finances, released October 9, shows wealth gains since 2022 were concentrated at the top of the income ladder.
The survey is conducted every three years and is the Fed's most detailed snapshot of American household finances.
The Split by Income
Families in the top 10 percent of earners saw their median net worth jump 31 percent since 2022 to $3,669,900 after adjusting for inflation.
The 80th to 90th percentile group was roughly flat, with a median net worth of $814,600.
Families between the 60th and 80th percentiles gained 8 percent to $362,500, and those between the 40th and 60th percentiles also gained 8 percent, reaching $188,200.
Below that, the picture reversed.
Families between the 20th and 40th percentiles saw median net worth fall 1 percent to $77,100, while the bottom 20 percent fell 6 percent to $14,400.
Across all families, median net worth rose just 2 percent to $215,900, while mean net worth rose 7 percent to $1,241,500.
Housing and Stocks Drive the Gap
The Fed said the wealth changes largely reinforced existing patterns of inequality, a contrast with 2019 to 2022, when net worth grew broadly across the distribution.
Wealth at the top is tied heavily to stock portfolios and home values, which kept climbing over the period.
Families at the bottom hold little in equities and are less likely to own homes, leaving them exposed to inflation without the asset gains that offset it.
The age split was also stark. Families aged 75 and older saw median net worth rise 37 percent, while families under 35 lost 23 percent.
The bottom quarter of families by wealth saw their median net worth fall to $1,700, from $3,800 in 2022.
Debt Stress Is Rising
The survey also showed growing strain at the lower end.
About 1 in 5 families reported being behind on loan payments in 2025, up from about 1 in 8 in 2022 and the highest level since 2007, per the Fed data.
Meanwhile, median family income rose 7 percent to a record $82,200, even as mean income fell 6 percent, a sign that income inequality narrowed slightly even as wealth gaps widened.
What It Means for Markets
A K-shaped consumer economy matters for retailers and lenders heading into the holiday season.
Traders are watching consumer discretionary names in the XLY against defensive staples in the XLP, along with big-box retailers like WMT and dollar-store chains like DG for signs of trading-down behavior.
Rising late payments also put card networks and lenders in focus, including V and MA.
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