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Median Household Income Hits Record $87,460 as Poverty Falls

By Markets Desk · 2026-09-16 · 1 min read
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Illustration: Tradingbird

US median household income reached a record $87,460 in 2025. The poverty rate dropped to 10.2%. These figures show economic strength despite inflation concerns.

US median household income reached a record $87,460 in 2025. This figure represents a 2.6% increase from 2024. It is the highest level recorded since tracking began in 1967.

The official poverty rate fell to 10.2%. This is a decrease of 0.5 percentage points. The child poverty rate dropped to a record low of 13.4%.

Income growth outpaces inflation

Economic data indicates strong performance despite high prices. Median income for Black households rose 4.8% in 2025. Hispanic household income remained statistically unchanged.

Former White House adviser Steve Moore called the numbers strong. He noted inflation remains at 3.5%. This rate is above the Federal Reserve's 2% target.

Fed policy faces balancing act

The Federal Reserve is reviewing its two-day meeting. The effective federal funds rate stood at 3.63% in September. Moore predicted a quarter-point rate increase.

Mortgage rates do not move identically with the federal funds rate. The 10-year Treasury yield was 4.97% on September 14. Longer-term market forces drive these rates.

Energy costs drive inflation

Consumers report frustration with food and fuel prices. Energy costs affect transportation and production. Oil prices influence the broader economy through shipping costs.

GN markets/inflation (en-US) reports that energy is a key input for goods. Higher oil prices can filter through the economy. This adds pressure on consumer budgets.

Based on reporting by WSMH, compiled by the Tradingbird desk.

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