Fed Survey Finds Americans Still Feel Financially Stable Despite Inflation Pressures

According to the Federal Reserve’s latest Economic Well-Being of U.S. Households report, which examines the financial circumstances of U.S. adults and their families in 2025, most Americans continued to feel financially stable last year, even as concerns about inflation, job security, and rising household costs persisted.

In the report, 73 percent of adults said they were either “doing okay” or “living comfortably” financially, which is unchanged from 2024 though still below the 78 percent peak reached in 2021. The survey, conducted in October 2025, also found that 63 percent of adults could cover a $400 emergency expense using cash or its equivalent, a figure that has remained relatively stable in recent years.

Despite relatively steady household finances, inflation remained consumers’ dominant concern. Roughly 58 percent of respondents said rising prices had worsened their financial situation over the prior year, while 77 percent reported changing spending behavior in response to higher costs, including delaying purchases or switching to cheaper products.

The report also highlighted growing anxiety about employment conditions. About 42 percent of adults expressed concern about finding or keeping a job, up from 37 percent the year before, even though the Fed characterized the labor market overall as “solid.” Layoffs increased modestly, while voluntary job switching declined, signaling a softer labor environment than in prior years. 

Financial well-being also varied significantly across demographic groups. While 79 percent of white adults and 82 percent of Asian adults reported feeling financially comfortable or okay, the figure dropped to 62 percent among Hispanic adults and 60 percent among Black adults. The share of Black adults reporting financial stability declined notably from the previous year. 

The survey comes as policymakers continue weighing inflation risks tied to rising energy prices and geopolitical instability, particularly the economic effects of the Iran conflict. Although economists generally do not expect a near-term recession, the Fed has indicated it may proceed cautiously on future interest-rate cuts amid renewed inflation pressures.