Black Americans’ Financial Well-Being Falls to Lowest Level in a Decade, Federal Reserve Data Shows

Black households are facing growing financial pressure as new Federal Reserve data shows a sharp decline in economic well-being among Black Americans, even as financial conditions remained relatively stable for U.S. adults overall.

According to the Federal Reserve’s 2025 Survey of Household Economics and Decisionmaking, just 60% of Black adults said they were doing okay financially or living comfortably in 2025, falling five percentage points from 65% in 2024.

The figure represents the lowest level reported by Black adults since 2014, when 55% described themselves as doing okay or living comfortably.

The decline stands in stark contrast to the country as a whole. Overall, 73% of U.S. adults reported doing okay financially or living comfortably in both 2024 and 2025.

Racial disparities also widened.

In 2025, 79% of White adults reported doing okay or living comfortably financially, compared with 82% of Asian adults, 62% of Hispanic adults and just 60% of Black adults. While financial well-being among Black adults declined five percentage points, the figure for White adults increased from 77% to 79%.

The Federal Reserve noted that Black adults showed signs of worsening financial conditions across several measures, including an increase in the share reporting that rising prices had harmed their finances and an increase in those experiencing layoffs.

Inflation also continues to weigh heavily on American households. Fifty-eight percent of adults said changes in prices during the previous year made their financial situation worse. Among Black adults specifically, 56% reported being financially harmed by price changes, an increase of seven percentage points from the previous year.

Economic hardship is showing up elsewhere as well. In 2025, 15% of Black adults reported sometimes or often not having enough to eat during the previous month, compared with 5% of White adults. Additionally, 32% of Black adults reported not paying all of their bills in full during the previous month, compared with 10% of White adults.

Employment uncertainty remains another concern. Federal Reserve researchers reported a small increase in layoffs during 2025 alongside fewer voluntary job departures and fewer workers changing jobs.

The findings arrive amid broader debate over the direction of the U.S. economy under President Donald Trump, including the effects of tariffs, federal workforce reductions and changes in government spending. While those policies have become part of the national discussion surrounding economic insecurity, the Federal Reserve survey itself does not establish that any single policy or presidential administration caused the decline in Black financial well-being.

Long-standing racial disparities in employment, income, wealth accumulation, access to credit and emergency savings can also leave Black households particularly vulnerable when economic conditions weaken.

The Federal Reserve has conducted its Survey of Household Economics and Decisionmaking annually since 2013. Its latest findings suggest that while headline financial conditions for Americans overall may appear relatively stable, that stability is not being experienced equally.

For millions of Black Americans, the financial margin available to absorb higher prices, employment instability or an unexpected bill appears to be getting smaller.

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