Fed’s Brainard says middle class families’ wealth hasn’t recovered from crisis

Federal Reserve Board Governor Lael Brainard speaks at the John F. Kennedy School of Government at Harvard University in Cambridge
FILE PHOTO: Federal Reserve Board Governor Lael Brainard speaks at the John F. Kennedy School of Government at Harvard University in Cambridge, Massachusetts, U.S., March 1, 2017. REUTERS/Brian Snyder

May 10, 2019

WASHINGTON (Reuters) – The wealth of middle class families still has not recovered from the 2007 to 2009 economic crisis, with a lagging rebound in home equity and slow wage growth continuing to widen inequality through the end of last year, Fed Gov. Lael Brainard said on Friday in a snapshot of soon to be released Fed data.

Brainard, in a broad discussion about the economic prospects of the middle class, said the Fed is increasingly concerned about the impact on the economy overall if families in the middle of the income distribution continue to struggle in their ability to build wealth, finance homes and educations, and even stay current with their bills.

(Reporting by Howard Schneider; Editing by Chizu Nomiyama)

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