U.S. citizens of Asian descent have made sizable gains in income and wealth in the past 25 years—so much so that they are on pace to eclipse whites as the wealthiest group of Americans, according to new data from the Federal Reserve.
In a recent study, the St. Louis Fed broke down income gains among ethnic groups and found that white families ranked first in inflation-adjusted dollars.
However, Asian-American wealth had "changed dramatically" since 1989, the bank said, with the demographic's middle-income group already overtaking that of Caucasians. That is due, in large measure, to what it calls "the remarkable increase in educational attainment by younger Asians in recent decades."
According to Bill Emmons, an economist at the St. Louis Fed, Asian-Americans may in fact become the wealthiest ethnic group in the U.S. within the next few decades.
"I would be surprised if Asian wealth didn't surpass in the next 25 years," he said.