The Fed's figures indicate it's entirely correct. What's actually happening is an increased bifurcation of outcomes in the US based on race and education levels.
Educated Whites, Blacks, Hispanics and Asians have all done well over the last decade.
For example, the median household net worth of a Black household with a four year degree or greater, increased by nearly 90% in just three years with the economic recovery from 2013 to 2016 (stocks and real-estate values). Educated Hispanic households saw a similarly outsized increased in their median net worth.
The median net worth of an educated Black household, is now considerably higher than the median net worth in Germany or Sweden. The same is true for an educated Hispanic household.
However, without that education level, Black households see a drop of ~83% in their median net worth figure. White households without a four year degree or greater, similarly see an ~80% drop in their median net worth.
The average net worth of a White household without an education, was $367,000 as of 2016. With a bachelor's degree or higher, it was $1.8 million. Median was $98k vs $397k.
The gains have mostly gone to educated households. That has produced an economic gain bias in favor of White and Asian households (which tend to have greater / easier access to higher education). That effect has pushed White and Asian households up the class bracket over the last four decades.
This is fundamentally why the US middle class has been spinning its wheels. You're seeing White and Asian households move up and out of the middle class, and Hispanic households move in, while Black households have been stuck with only very modest progress.
Educated Whites, Blacks, Hispanics and Asians have all done well over the last decade.
For example, the median household net worth of a Black household with a four year degree or greater, increased by nearly 90% in just three years with the economic recovery from 2013 to 2016 (stocks and real-estate values). Educated Hispanic households saw a similarly outsized increased in their median net worth.
The median net worth of an educated Black household, is now considerably higher than the median net worth in Germany or Sweden. The same is true for an educated Hispanic household.
However, without that education level, Black households see a drop of ~83% in their median net worth figure. White households without a four year degree or greater, similarly see an ~80% drop in their median net worth.
The average net worth of a White household without an education, was $367,000 as of 2016. With a bachelor's degree or higher, it was $1.8 million. Median was $98k vs $397k.
The gains have mostly gone to educated households. That has produced an economic gain bias in favor of White and Asian households (which tend to have greater / easier access to higher education). That effect has pushed White and Asian households up the class bracket over the last four decades.
This is fundamentally why the US middle class has been spinning its wheels. You're seeing White and Asian households move up and out of the middle class, and Hispanic households move in, while Black households have been stuck with only very modest progress.
https://www.federalreserve.gov/econres/notes/feds-notes/rece...