Fed launches study to gain insight into household finances

The Federal Reserve Board is launching a statistical study of household finances that will provide policymakers with insight into the economic condition of a broad cross-section of American families.

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The Fed’s Survey of Consumer Finances will provide a representative picture of what Americans own, from houses and cars to stocks and bonds, how much they borrow, and how they bank.

“This survey is one of the nation’s primary sources of information on the financial condition of different types of families,” Federal Reserve Board Chair Jerome Powell said in a letter to prospective survey participants. “Our most recent survey has been instrumental in continuing to understand the different experiences of American families during the economic uncertainty resulting from the COVID-19 pandemic.”

The study has taken place every three years since 1983. It is being conducted for the Fed by NORC, a social science research organization at the University of Chicago.

Study participants are chosen at random from 119 areas, including metropolitan areas and rural counties, using a scientific sampling procedure. A letter from Powell will be mailed in mid-March to approximately 13,000 households urging their participation in the study. That data will be gathered through December. The 2022 survey will include adjustments to improve the coverage of Black, Hispanic or Latino, and Asian families in the survey.

Individual survey responses are kept confidential and identifying information will be destroyed at the close of the study. NORC is forbidden from giving the names and addresses of participants to anyone at the Federal Reserve or anywhere else.

Past study results have contributed to policy discussions regarding the recovery of households from the Great Recession, changes in the use of credit, the use of tax-preferred retirement savings accounts, and a broad range of other issues.

The results of the 2022 study will be published in late 2023 after all data from the survey have been assessed and analyzed.