The Federal Reserve reveals a disturbing reality about wealthy Americans

The numbers from the Federal Reserve are staggering. America’s wealthiest households aren’t just doing well. They are moving further forward at a pace unprecedented in history.

According to CBS News, the top 1% of U.S. households held 31.7% of total household wealth in the third quarter of 2025, the highest proportion on record since the Federal Reserve began tracking the data in 1989. In dollar terms, that group held an estimated $55 trillion in wealth, nearly as much as the combined wealth of the entire bottom 90% of Americans.

“Household assets are highly concentrated and getting more concentrated,” said Mark Zandi, chief economist at Moody’s Analytics.

The focus is strongest on financial assets. The top 10% of households control more than 87% of total company equity and mutual fund shares. When stock prices rise, that’s when profits flow in first and fastest.

Related: America’s wealthiest households hit $30 million as the middle class lags

Consumer spending data underscores the divide. According to Zandi’s analysis of Federal Reserve data, in the second quarter of 2025, the top 10% of earners accounted for nearly half of all U.S. consumer spending. That is a remarkable concentration of economic activity in a very narrow segment of the population.

The stock market is the main engine. Last year’s AI-driven rally boosted equity values ​​strongly, and wealthier households benefited the most as the majority of their wealth was invested in stocks and securities. According to Gallup data cited by CBS News, 87% of Americans who own stocks live in households with incomes of $100,000 or more.

Housing tells a different story for others. Middle-income households typically have the majority of their assets tied up in their homes, and home price growth is slowing. That means they don’t get the same boost from developing markets that wealthy investors get from stocks.

Wages are increasingly widening the gap. Higher-income Americans see a 3% wage increase by December 2025, compared with 1.5% for middle-income households and just 1.1% for lower-income households.

This is not purely a social problem. It has direct implications for how stable the economy actually is under its surface strength.

ThanEconomy:

As wealthy households account for a disproportionate share of consumer spending, national data can appear stable even as most Americans feel financial pressure. Strong headline numbers on consumer spending may mask the reality that low- and middle-income households are facing heavier debt burdens and slower income growth.

The Federal Reserve’s own research has found that higher income inequality is linked to more household debt relative to GDP, especially through mortgage debt. A rising stock market can make the rich richer while making the overall economy more financially fragile.

• Share of top 1% of US household assets: 31.7% in third quarter 2025, record high

• Top 1% of total assets: about 55 trillion USD

• Combined wealth of the bottom 90%: about $54 trillion

• Top 10% holdings of corporate equity and mutual funds: more than 87%

• Share of top 10% consumer spending in Q2 2025: nearly 50%

• Wage growth December 2025: 3% for high earners vs. 1.1% for low earners

When a certain percentage of households control more assets than the bottom 90% of households combined, the economy begins to behave differently. Growth becomes more dependent on a narrow group of asset owners than on broad-based consumption.

That creates a fragile foundation. If wealthy households reduce spending, whether due to a market correction, loss of confidence or a change in sentiment, the ripple effect could spread across the economy quickly. There is no padding from the middle to absorb shock.

The data also raises questions about what economic strength really means. As consumer spending increases largely due to the richest 10% spending more, the headline numbers can look solid while the majority of households are quietly struggling. The gap between data and actual experience is exactly what the Fed’s numbers are now measuring.

The gap between rich and poor has been increasing for decades. What makes the current picture remarkable is the speed of concentration and the scale of the divide. The longer this situation lasts, the harder it will be to reverse, and the more the economy’s strength will depend on a foundation that only a small portion of Americans are standing on.

Related: Powell sends a message about the US economy and fears of AI-related job losses

This story was originally published by TheStreet on April 11, 2026, where it first appeared in the Economy section. Add TheStreet as a Preferred Source by clicking here.