Federal Reserve Survey Reveals Increased Financial Stress and Wealth Inequality Among U.S. Households

A new Federal Reserve Survey of Consumer Finances, covering 2022-2025, indicates that while most U.S. families experienced moderate increases in income and net worth, an increasing subset faced financial stress. The survey highlighted a significant decline in net worth for the bottom fourth of households and a 25% drop for median Black families. Debt payments as a share of income rose to 15.4%, and the total debt-to-income ratio increased to 94.9%. The share of families behind on loan payments sharply increased from 12% to almost 20%.