The numbers from the Federal Reserve are striking. America’s wealthiest households are not just doing well. They are pulling further ahead at a pace that has no historical precedent.
The top 1% of U.S. households held 31.7% of all household wealth in the third quarter of 2025, the highest share recorded since the Federal Reserve began tracking the data in 1989, according to CBS News. In dollar terms, that group holds an estimated $55 trillion in assets, roughly equal to the combined wealth of the entire bottom 90% of Americans.
What the Fed data actually shows
“Household wealth is highly concentrated and becoming steadily more concentrated,” said Mark Zandi, chief economist at Moody’s Analytics.
The concentration is sharpest in financial assets. The top 10% of households control more than 87% of all corporate equity and mutual fund shares. When stock prices rise, that is where the gains flow first and fastest.
Related: America’s wealthiest households hit $30 million as middle class lags
Consumer spending data underscores the divide. In the second quarter of 2025, the top 10% of income earners accounted for nearly half of all U.S. consumer spending, per Zandi’s analysis of Federal Reserve data. That is a striking concentration of economic activity in a very narrow slice of the population.
What is driving the gap
The stock market is the primary engine. Last year’s AI-driven rally boosted equity values sharply, and wealthier households benefited most because a larger share of their wealth is invested in stocks and securities. According to Gallup data cited by CBS News, 87% of Americans who own stocks live in households earning $100,000 or more.
Housing tells a different story for everyone else. Middle-income households typically have most of their wealth tied up in their homes, and house price growth has been slowing. That means they are not receiving the same lift from rising markets that wealthy investors are getting from equities.
Wages are widening the gap further. Higher-income Americans saw wage growth of 3% in December 2025, compared to 1.5% for middle-income households and just 1.1% for lower-income households.
Why this matters beyond inequality
This is not purely a social issue. It has direct implications for how stable the economy actually is beneath its surface-level strength.
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When wealthy households carry a disproportionate share of consumer spending, the national data can look resilient even when most Americans feel financially pressured. A strong headline number on consumer spending can mask the reality that lower- and middle-income households are dealing with heavier debt burdens and slower income growth.
The Federal Reserve’s own research has found that higher income inequality is associated with more household debt relative to GDP, particularly through mortgage debt. A rising stock market can make the wealthy richer while simultaneously making the broader economy more financially fragile.
Key figures from the Federal Reserve data:
- Top 1% share of U.S. household wealth: 31.7% in Q3 2025, a record high
- Top 1% total assets: approximately $55 trillion
- Bottom 90% combined wealth: approximately $54 trillion
- Top 10% share of corporate equity and mutual funds: more than 87%
- Top 10% share of consumer spending Q2 2025: nearly 50%
- Wage growth December 2025: 3% for high earners vs 1.1% for low earners
Morris/Getty Images
What this level of concentration means for the economy
When a single percentage of households controls more wealth than the bottom 90% combined, the economy starts to function differently. Growth becomes dependent on a narrow group of asset owners rather than broad-based consumer activity.
That creates a fragile foundation. If wealthy households pull back spending, whether from a market correction, a loss of confidence, or a shift in sentiment, the ripple effects can move through the economy quickly. There is no cushion from the broad middle to absorb the shock.
The data also raises questions about what economic strength actually means. When consumer spending holds up largely because the top 10% are spending more, the headline numbers can look solid while the majority of households quietly struggle. That gap between the data and lived experience is exactly what the Fed’s numbers are now measuring.
The wealth gap has been widening for decades. What makes the current picture notable is the speed of concentration and the scale of the divide. The longer it continues, the harder it becomes to reverse, and the more the economy’s strength depends on a foundation that only a small fraction of Americans are standing on.
Related: Powell sends message on U.S. economy and AI-related job loss fear
