American household incomes rebounded ahead of election year, hitting pre-pandemic levels

American household incomes rebounded ahead of the election year, with the typical family locking in a 4% bump in earnings in 2023, according to new U.S. Census data. It's the first time since 2019 that households have enjoyed a significant earnings increase, the agency said.

Median household income jumped to $80,610 in 2023, roughly on par with Americans' 2019 earnings level on an inflation-adjusted basis. The income gains also come as inflation eased last year, thanks to a series of rate hikes from the Federal Reserve aimed at cooling the economy. 

While the data tracks economic performance from 2023, there are signs that U.S. households have continued to make financial gains so far this year. For one, wages have have been pacing ahead of inflation since May 2023, providing more buying power for budget-pinched consumers.