Fed data shows post-pandemic income inequality narrowed as lower earners gained

The Federal Reserve's Survey of Consumer Finances, released Friday, shows inflation-adjusted incomes rose for middle- and lower-earners during the Biden years while high earners saw declines, a surprising reversal of the prior trend. The finding is based on a thorough dataset but reflects a specific period with tight labor markets and high inflation, so its persistence is uncertain. This matters because it challenges the prevailing narrative of widening inequality and could influence policy debates on redistribution and labor market dynamics.