"Racial Disparities in Wealth Growth Exacerbated During Pandemic Recovery, NY Fed Study Reveals"

A New York Fed study reveals that during the pandemic, the net worth of white individuals grew by 30 percentage points more than that of Black individuals, largely due to gains in financial markets. Despite government support and a strong job market, wealth inequality persists, with a larger percentage of white households having investments in stocks and mutual funds. The study highlights the challenge of closing the wealth gap, as Black households have more wealth concentrated in pensions rather than market-linked assets. Black-owned businesses were disproportionately affected by the pandemic, and Treasury Deputy Secretary Walley Adeyemo suggests the need for policy interventions to address the significant wealth disparity between Black and white Americans.