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Wealth can be transformative in its ability to promote financial security and opportunity across generations. Yet, wealth gaps have existed well before the pandemic, and the uneven trajectory of the recovery may have intensified them. Historical factors and ongoing systemic barriers have significantly inhibited the ability of people of color, women, and other disadvantaged groups to accumulate meaningful levels of wealth.

Wealth gaps could widen further depending on housing and stock market performance and the expected expiration of critical cash, food, housing, and debt assistance to struggling families. As a result, households may experience depleting savings and increasing debts to potentially alarming levels. Price increases in various sectors, resulting from inflation and global events, could have disparate effects on family wealth holdings. This could burden those with less wealth even more while those with greater wealth may draw down theirs to meet consumption needs. How can we ensure the most vulnerable families are equitably included in recovery and wealth-building efforts? How can more families build the healthy balance sheets they need to thrive?

This seminar, presented by the Federal Reserve Banks of Boston and St. Louis on June 29, 2002, featured an expert discussion of wealth trends since the pandemic and how evidence-based responses, within households and the broader economy, can promote wealth equity and an inclusive wealth recovery. The first panel provided a framing of the issue, including how different household assets and liabilities have been affected. The second panel explored ideas on how to move beyond a simple recovery mindset and focus on collectively getting families to a more stable and resilient wealth position moving forward.

For takeaways from our seminar hosts, read How the pandemic affected savings and debts, and how we can build wealth for all.